In a Sensitivity Report, a Solution Is Considered An) Solution

question 36

Multiple Choice

In a sensitivity report, a solution is considered an) solution if the right-hand-side value of any constraint has a zero Allowable Increase or Allowable Decrease.

• A) algorithmic
• B) unbounded
• C) infeasible
• D) degenerate

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Definitions:

Contingent Immunization

A mixed passive-active strategy that immunizes a portfolio if necessary to guarantee a minimum acceptable return but otherwise allows active management.

Risk Tolerance

An investor's ability or willingness to endure market volatility and potential loss in the value of investments.

Life Cycle

The series of stages through which a product or project passes, from initial concept through growth, maturity, and eventual decline.

Tax-Deferral Option

The feature of the U.S. Internal Revenue Code that capital gains tax is assessed only when the asset is sold.