Duration Matching Immunizes a Portfolio Against

question 11

Multiple Choice

Duration matching immunizes a portfolio against

• A) Any parallel shift in the yield curve
• B) All shifts in the yield curve
• C) Changes in the steepness of the yield curve
• D) Small parallel shifts in the yield curve

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Definitions:

Construct Validity

The degree to which a test or instrument measures the theoretical construct it is intended to measure.

Correlate

To possess a reciprocal relationship or link, where one element influences or relies upon another.

Measures

Tools or instruments used to quantify or categorize variables, typically for the purpose of research or assessment.

Test Validity

The degree to which a test accurately measures what it intends to measure.