Financial Performance Evaluation of a Foreign Subsidiary or Affiliate Usually

question 25

True/False

Financial performance evaluation of a foreign subsidiary or affiliate usually is based on profit and return on investment.

---

Definitions:

Rebalancing

The process of realigning the proportions of assets in a portfolio to maintain the original or desired level of asset allocation and risk.

Durations

A measure of the sensitivity of the price of a bond or other debt instrument to changes in interest rates, often used as an indicator of interest rate risk.

Yield Curve

A graph of yield to maturity as a function of time to maturity.

Immunization

A strategy in fixed-income portfolio management to shield the portfolio's value from interest rate movements.