menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Financial Markets
  4. Exam
    Exam 14: Managing Interest Rate Risk
  5. Question
    Insulating a Portfolio from the Effects of Interest Rate Changes
Solved

Insulating a Portfolio from the Effects of Interest Rate Changes

Question 46

Question 46

Multiple Choice

Insulating a portfolio from the effects of interest rate changes is known as:


A) immunisation.
B) gapping.
C) sterilisation.
D) duration.

Correct Answer:

verifed

Verified

Unlock this answer now
Get Access to more Verified Answers free of charge

Related Questions

Q41: A perpetuity (a bond with an infinite

Q42: In the immunisation process:<br>A) DGAP is not

Q43: The error in the approximation increases as

Q44: The duration of a coupon bond_ at

Q45: The performance of fund managers is often

Q47: DGAP protects us against uniform changes in

Q48: When DGAP < 0, DA is below

Q49: Can derivatives be used to enhance hedging?

Q50: Which of the following is a characteristic

Q51: The sensitivity of the security price to

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines