Examlex

Solved

The FI's Portfolio Is Immunised When the Weighted-Average Duration of the Bond

question 8

True/False

The FI's portfolio is immunised when the weighted-average duration of the bond portfolio exactly equals the weighted-average maturity of the bond portfolio.


Definitions:

Serialization

The process of converting an object into a sequence of bytes for storage, transmission, or processing, commonly used in computing for data exchange and persistence.

Identification

The process by which an individual aligns themselves with the values, beliefs, or behaviors of another person or group, often as a role model.

Sensory Memory

A type of storage that holds sensory information for a few seconds or less after an item is perceived.

Working Memory

A cognitive system that holds information temporarily available for processing tasks such as reasoning, learning, and comprehension.

Related Questions