Immunization Through Duration Matching of Assets and Liabilities May Be

question 51

Multiple Choice

Immunization through duration matching of assets and liabilities may be ineffective or inappropriate because

• A) conventional duration strategies assume a flat yield curve.
• B) duration matching can only immunize portfolios from parallel shifts in the yield curve.
• C) immunization only protects the nominal value of terminal liabilities and does not allow for inflation adjustment.
• D) None of the options are correct.
• E) All of the options are correct.

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Definitions:

Implicit Attitudes

Unconscious beliefs or feelings that can influence one's behavior and understanding without one's awareness.

Prejudice

Prejudice is a preconceived opinion that is not based on reason or actual experience, often involving discriminatory thoughts or beliefs towards different groups of people.

Unconscious

The unconscious consists of the processes in the mind that occur automatically and are not available to introspection, including thought processes, memories, interests, and motivations.

Social Traps

Situations in which individuals or groups pursue self-interest leading to a result that is damaging to themselves or society as a whole.