Immunisation Does Not Require Constant Portfolio Rebalancing When Interest Rates

question 20

True/False

Immunisation does not require constant portfolio rebalancing when interest rates move.

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Definitions:

Cycloheptatriene

A cyclic hydrocarbon with seven carbon atoms and three double bonds, known for its interesting reactivity due to aromatic destabilization.

Deprotonated

Refers to a molecule or ion that has lost a hydrogen ion (H+), resulting in a base form.

Resonance Forms

Different structures of a molecule that depict the delocalization of electrons within the molecule, explaining its stability.

Cycloheptatrienyl Cation

A positively charged aromatic species, also known as the tropylium ion, with a seven-carbon ring structure and three double bonds providing aromatic stability.