As the Investment Horizon Approaches, the Duration of an Unrebalanced

question 6

True/False

As the investment horizon approaches, the duration of an unrebalanced portfolio that originally was immunized will be less than the time remaining to the investment horizon.

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Definitions:

Normal Balance

The usual balance of an account in the accounting system, where asset and expense accounts typically have a debit balance, and liability, equity, and revenue accounts have a credit balance.

Discount Period

The timeframe within which a buyer can take advantage of a discount for paying an invoice early.

F.O.B Shipping Point

Free on Board Shipping Point, a term indicating that the buyer takes responsibility for goods the moment they leave the seller's premises.

Discount Period

The time frame in which a buyer may take advantage of a discount offered by a seller for early payment.