Which of the Following Risks Can Be Essentially Eliminated by Immunizing

question 33

Multiple Choice

Which of the following risks can be essentially eliminated by immunizing a bond portfolio?
I. default risk
II. price risk
III. reinvestment risk
IV. liquidity risk

• A) I, II and III only
• B) II and III only
• C) II, III and IV only
• D) I, II, III and IV

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Definitions:

Protecting Groups

Chemical groups attached to a molecule's sensitive functional groups to block them from unwanted reactions during synthesis steps, to be removed later to reveal the original functional group.

Carboxypeptidase

An enzyme that catalyzes the hydrolysis of the carboxyl-terminal (C-terminal) peptide bond in a protein or peptide.

Sequence Information

Refers to the order of units (such as nucleotides in nucleic acids or amino acids in proteins) within a macromolecule, critical for determining its function and properties.

Glycoprotein

A type of protein that has carbohydrate groups attached to the polypeptide chain, significant in cell-cell communication.