Which of the Following Is a Strategy That Allows the Bond

question 20

Multiple Choice

Which of the following is a strategy that allows the bond manager flexibility to actively manage the portfolio subject to an overriding constraint that the portfolio remains immunized at some predetermined yield level?

• A) classical immunization
• B) contingent immunization
• C) bond swaps
• D) valuation analysis
• E) interest rate anticipation

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Definitions:

Motivation

The process that initiates, guides, and maintains goal-oriented behaviors, driving individuals to pursue and attain goals.

Maslow Hierarchy

A psychological theory proposing a five-tier model of human needs, from basic (physiological) to more complex (self-actualization) needs.

Social

Pertains to the interactions and relationships among individuals in a society and the structure and norms that guide these interactions.

Self-actualization

A concept in psychology, often associated with Maslow's hierarchy of needs, representing the realization of one's potential and the fulfillment of personal talents and capabilities.