Periodically Rebalancing a Portfolio So That the Duration Continues to Match

question 1

Multiple Choice

Periodically rebalancing a portfolio so that the duration continues to match the target date is called:

• A)risk assessment.
• B)duration testing.
• C)dedication matching.
• D)portfolio matching.
• E)dynamic immunization.

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Definitions:

Yearly Contribution

The amount of money contributed to an investment or savings account on an annual basis.

Traditional Retirement Plan

A tax-deferred retirement savings account where contributions may lower current taxable income and earnings grow tax-free until withdrawn.

Roth Retirement Plan

A type of retirement savings plan where contributions are made with after-tax dollars, and qualified withdrawals in the future are tax-free.

Income Growth

The increase in the amount of money earned from investments or employment over time, reflecting economic expansion or personal financial improvement.