9-61 Immunization of a Portfolio Implies That Changes in _____

question 112

Multiple Choice

9-61 Immunization of a portfolio implies that changes in _____ will not affect the value of the portfolio.

• A)book value of assets
• B)maturity
• C)market prices
• D)interest rates
• E)duration

---

Definitions:

Upward-Sloping

Refers to a line on a graph that demonstrates an increase in value on the vertical axis as the value on the horizontal axis increases; typically related to supply curves in economics.

Pure Competition

Another term for a purely competitive market, emphasizing the absence of barriers to entry and the presence of numerous sellers and buyers.

Average Total Cost

The per-unit production cost, obtained by dividing the overall expenses of production by the number of items produced.