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

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

Quizplus · Accepted Answer

Immunization requires periodic rebalancing to maintain the portfolio's duration and ensure it remains aligned with the investment horizon, as interest rates and bond prices change over time.

Once a Bond Portfolio Is Initially Immunised, an Investor Should