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

Name: Once a bond portfolio is initially immunized, an investor should maintain the portfolio as it is until the end of the investment horizon.
Brand: Quizplus
Rating: 4.8 (51 reviews)

Question

Quizplus · Accepted Answer

Immunization is not a one-time process; as interest rates change and time passes, the portfolio's duration and the target duration may no longer match, requiring adjustments to the portfolio to maintain immunization.

Once a Bond Portfolio Is Initially Immunized, an Investor Should