Immunization Is Not a Strictly Passive Strategy Because

question 10

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 the options