Last Year, You Created an Immunized Portfolio with an Average

question 68

Multiple Choice

Last year, you created an immunized portfolio with an average maturity date of 14.5 years, a yield to maturity of 9.8%, and a duration of 9.6 years. According to the policy of dynamic immunization, which of the following is the best choice for modifying your portfolio?

• A)modify the yield to maturity to 9.1%
• B)modify the portfolio so the average maturity remains at 14.5 years
• C)modify the portfolio so the average maturity becomes 13.5 years
• D)modify the portfolio so the duration remains at 9.6 years
• E)modify the portfolio so the duration becomes 8.6 years

---

Definitions:

Sensory Memory

The shortest-term element of memory that acts as a buffer for stimuli received through the senses.

Atkinson and Shiffrin

Psychologists who proposed a model of memory in the 1960s, known as the multi-store or modal model, which includes the sensory register, short-term memory, and long-term memory.

Memory Storage

Memory Storage is the process of retaining information in the brain over time through the encoding, storage, and retrieval of experiences and learned information.

Conscious Experience

The subjective awareness of one's thoughts, feelings, and surroundings.