_____________ Is a Strategy of Protecting Securities Purchased from Loss

question 67

Multiple Choice

_____________ is a strategy of protecting securities purchased from loss of return,no matter which way interest rates go.

• A)Duration
• B)Immunization
• C)Front-end loading
• D)Back-end loading
• E)Factorization

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Definitions:

Earnings Retention Ratio

The proportion of net income that a company retains to reinvest in its business rather than distributing it to shareholders as dividends.

Marble

A metamorphic rock composed mainly of recrystallized carbonate minerals, commonly used in sculpture and as a building material.

External Financing Need

The requirement for funds that a company must fulfill through external sources, like equity or debt, to finance its operations beyond what it can fund through its internal cash flow.

Full Capacity

The maximum level of output that a company can sustain over a long period without increasing its fixed costs.