Which of the following statements is true?
A) If duration > investment horizon, the investor faces net reinvestment risk.
B) If duration < investment horizon, the investor faces net price risk.
C) If duration = investment horizon, the investor is immunised.
D) All of the above statements are true.
E) None of the above statements are true.
Correct Answer:
Verified
Q2: Horizon matching is a combination of
A) immunisation
Q3: Consider two bonds, both pay annual interest.
Q5: A pure yield pickup swap involves swapping
Q6: Coupon reinvestment risk arises because the yield
Q8: In core-plus bond management
A) 75 per cent
Q9: Horizon matching is a combination of
A) cash-matching
Q10: The active strategies for bond management include
Q11: You are creating a portfolio that consists
Q12: Investment style for a bond portfolio is
Q26: Which of the following is a matched
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