A Dedicated Portfolio

question 42

Multiple Choice

A dedicated portfolio

• A) matches the timing of cash inflows and outflows.
• B) is subject to interest-rate risk.
• C) invests only in zero-coupon bonds.
• D) is subject to reinvestment-rate risk.

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Definitions:

Secures Payment

Refers to any method or measure taken to ensure that a debt or financial obligation will be paid, such as collateral or a guarantee.

UCC

The Uniform Commercial Code (UCC) is a comprehensive set of laws governing all commercial transactions in the United States.

Secured Transactions

involve agreements in which the borrower provides the lender a security interest in personal property as collateral for a loan.

Personal Property

Any property that is not real property, including movable objects, vehicles, furniture, and intellectual property.