Periodically Rebalancing a Portfolio So That the Duration Continues to Match

question 1

Multiple Choice

Periodically rebalancing a portfolio so that the duration continues to match the target date is called:

• A)risk assessment.
• B)duration testing.
• C)dedication matching.
• D)portfolio matching.
• E)dynamic immunization.

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Definitions:

Limbic System

A complex system of nerves and networks in the brain, involving various areas near the edge of the cortex concerned with instinct and mood. It controls the basic emotions (fear, pleasure, anger) and drives (hunger, sex, dominance, care of offspring).

Endocrine System

The body system consisting of a set of glands that regulate the activities of certain organs by releasing their chemical products into the bloodstream.

Electrochemical Transmission

The process of nerve cells communicating with each other through electrical signals and chemical neurotransmitters across synapses.

Integration

The process of combining or adding parts to make a unified whole; in mathematics, it represents the process of finding an integral or the inverse of differentiation.