Multiple Choice
The statement that a portfolio is immunised using duration matching:
A) means that the FI is entirely hedged against interest rate risks
B) is misleading as duration matching is a dynamic process and only hedges the FI against instantaneous interest rate changes
C) is misleading as duration matching is a dynamic process and only hedges the FI against interest rate changes that occur within a month
D) None of the listed options are correct.
Correct Answer:
Verified
Correct Answer:
Verified
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