Once a Bond Portfolio Is Initially Immunized, an Investor Should

question 13

True/False

Once a bond portfolio is initially immunized, an investor should maintain the portfolio as it is until the end of the investment horizon.

---

Definitions:

Uncertainty

A situation characterized by doubt or the inability to predict outcomes due to insufficient information or unpredictable variables.

Defined Benefit Plans

Retirement plans promising a specified monthly benefit at retirement, often based on salary and years of service.

Longevity

The length of time an individual or entity has been in existence or operational, often used in the context of work tenure or product durability.

Defined Contribution Plans

Retirement plans in which employees contribute a fixed amount or percentage of their salaries, and the final benefits depend on the plan's investment performance.