Immunization of a portfolio implies that changes in _____ will not affect the value of the portfolio.
A)book value of assets
B)maturity
C)market prices
D)interest rates
E)duration

Question

Quizplus · Accepted Answer

Immunization of a portfolio implies that changes in interest rates will not affect the value of the portfolio. This means that if interest rates go up or down, the value of the portfolio will remain stable. Other factors such as market prices, maturity, book value of assets, and duration can still affect the value of the portfolio, but immunization specifically focuses on protecting against interest rate risk.

Immunization of a Portfolio Implies That Changes in _____ Will