Immunization Is Not a Strictly Passive Strategy Because

question 31

Multiple Choice

Immunization is not a strictly passive strategy because

• A) it requires choosing an asset portfolio that matches an index.
• B) there is likely to be a gap between the values of assets and liabilities in most portfolios.
• C) it requires frequent rebalancing as maturities and interest rates change.
• D) durations of assets and liabilities fall at the same rate.
• E) none of these.

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