Multiple Choice
James has a 10-year investment horizon. To achieve an immunized position, his bond portfolio will have an average duration that is:
A) greater than 10 years and have an average maturity that is less than 10 years.
B) equal to 10 years and have an average maturity that is less than 10 years.
C) less than 10 years and have an average maturity that is equal to 10 years.
D) equal to 10 years and have an average maturity that is greater than 10 years.
Correct Answer:
Verified
Correct Answer:
Verified
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