The Principle of Duration Matching Is Not

question 29

Multiple Choice

The principle of duration matching is not

• A) used only in bond portfolio management.
• B) a useful concept for investments with target dates.
• C) matching one's assets to one's objectives.
• D) a useful concept for investments with target dates or matching one's assets to one's objectives.
• E) None of the options are correct.

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Definitions:

Internals

Individuals who believe they can control their lives and outcomes through their own efforts, reflecting an internal locus of control.

Coronary-prone Behavior Patterns

Personality traits and behaviors, such as hostility and urgency, which have been linked to an increased risk of heart disease.

Self-efficacy Expectations

The belief in one's ability to execute behaviors necessary to produce specific performance attainments, influencing how one feels, thinks, and acts.

Psychological Hardiness

A personality trait characterized by resilience and the ability to endure stressful situations, often associated with a positive outlook in challenging conditions.