Contingent immunization
A) is a mixed-active passive bond portfolio management strategy.
B) is a strategy whereby the portfolio may or may not be immunized.
C) is a strategy whereby if and when some trigger point value of the portfolio is reached,the portfolio is immunized to insure an minimum required return.
D) a and b.
E) a,b,and c.

Question

Quizplus · Accepted Answer

Contingent immunization involves a mixed-active passive bond portfolio management strategy (A), may or may not be immunized depending on conditions (B), and involves immunizing the portfolio when a trigger point is reached to ensure a minimum required return (C).

Contingent Immunization