SOFE Accredited Financial Examiner AFE Question # 65 Topic 7 Discussion

SOFE Accredited Financial Examiner AFE Question # 65 Topic 7 Discussion

AFE Exam Topic 7 Question 65 Discussion:
Question #: 65
Topic #: 7

Immunization theory says that:


A.

duration matching requires rebalancing the asset portfolio, but the theoretically correct answer is to rebalance continuously.


B.

Investment matching requires rebalancing the liabilities portfolio, but the theoretically correct answer is to rebalance annually.


C.

Performance matching requires rebalancing the expense portfolio, but the theoretically correct answer is to rebalance continuously as and when needed only.


D.

Balance matching requires rebalancing the revenues portfolio, but the theoretically correct answer is to rebalance continuously.


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