Immunization Is Not a Strictly Passive Strategy Because

question 27

Multiple Choice

Immunization is not a strictly passive strategy because

• A)it requires choosing an asset portfolio that matches an index.
• B)there is likely to be a gap between the values of assets and liabilities in most portfolios.
• C)it requires frequent rebalancing as maturities and interest rates change.
• D)durations of assets and liabilities fall at the same rate.

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Definitions:

Serous Acinus

A cluster of cells found in serous glands that produce watery, enzyme-rich secretions.

Mucous Acinus

A secretory unit of a gland that produces mucous, typically found in salivary glands and other mucous-secreting glands.

Acinar Cell

A cell of the exocrine glands that is responsible for producing and releasing certain substances, such as enzymes in the pancreas.

Photomicrograph

An image of a very small or microscopic object taken with the help of a microscope.