Last Year,you Created an Immunized Portfolio with an Average Maturity

question 72

Multiple Choice

Last year,you created an immunized portfolio with an average maturity date of 14.5 years,a yield-to-maturity of 9.8 percent,and a duration of 9.6 years.According to the policy of dynamic immunization,you should now modify your portfolio in which one of the following ways?

• A) modify the yield-to-maturity to 9.1 percent
• B) modify the portfolio so the average maturity remains at 14.5 years
• C) modify the portfolio so the average maturity becomes 13.5 years
• D) modify the portfolio so the duration remains at 9.6 years
• E) modify the portfolio so the duration becomes 8.6 years

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Definitions:

Summary Judgment

A legal procedure where the court makes a decision based on statements and evidence without going to trial.

Aesthetic Pollution

The degradation of a visual or natural environment, making it unappealing or less desirable, often due to human-made structures or waste.

Directed Verdict

A ruling by a court in favor of one party without allowing the case to go to jury, usually because the opposing party has not met the burden of proof.

Pretrial Conference

A meeting between the parties involved in a legal case and the judge, aimed at simplifying the issues and planning the course of the trial.