SOFE
AFE · Question #51
Immunization theory says that:
The correct answer is A. duration matching requires rebalancing the asset portfolio, but the theoretically correct answer is to rebalance continuously. See the full explanation below for the reasoning.
Question
Immunization theory says that:
Options
- Aduration matching requires rebalancing the asset portfolio, but the theoretically correct answer is to rebalance continuously.
- BInvestment matching requires rebalancing the liabilities portfolio, but the theoretically correct answer is to rebalance annually.
- CPerformance matching requires rebalancing the expense portfolio, but the theoretically correct answer is to rebalance continuously as and when needed only.
- DBalance matching requires rebalancing the revenues portfolio, but the theoretically correct answer is to rebalance continuously.
How the community answered
(22 responses)- A82% (18)
- B9% (2)
- C5% (1)
- D5% (1)
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