Immunization Is Not a Strictly Passive Strategy Because

question 70

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.
• E) None of the options are correct.

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Definitions:

Paranasal Sinuses

Air-filled spaces within the bones of the skull and face, connected to the nasal cavity and involved in the production of mucus and voice resonance.

Paranasal Sinuses

Air-filled spaces in the bones of the skull that are connected to the nasal cavity.

Nasopharynx

The nasopharynx is the upper part of the pharynx, connecting the nasal cavity above to the mouth and larynx below.

Simple Squamous Epithelium

A single layer of flat cells lining surfaces involved in passive diffusion, such as the lining of blood vessels and air sacs of the lungs.