To Immunize Your Portfolio, You Should

question 102

Multiple Choice

To immunize your portfolio, you should:

• A)avoid callable bonds.
• B)match bond maturity dates to your target dates.
• C)match bond durations to your target dates.
• D)purchase only par value bonds.
• E)purchase only high-coupon bonds.

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Definitions:

Appropriate Feedback

Constructive and relevant information given to an individual or group regarding their behavior or performance intended to guide future improvements.

Equity Theory

A theory in social psychology and organizational behavior that explains how individuals perceive fairness in distribution of resources within interpersonal relationships, leading to feelings of satisfaction or dissatisfaction.

Input to Outcome

The relationship or correlation between contributed resources or efforts (inputs) and the results or achievements (outcomes).

Fairness of Rewards

The perceived equity and justice of the distribution of outcomes and rewards among individuals or groups, influencing their satisfaction and motivation.