a. What are the two effects on the target date value of a dedicated portfolio of a
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a. What are the two effects on the target date value of a dedicated portfolio of a shift in yields? Explain why they tend to offset.
b. How can a dedicated portfolio be immunized against shifts in yields?
c. Why is rebalancing necessary to maintain immunization?
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a Effects of Shift in Yields on Target Date Value in a Dedicated Portfolio 1 Reinvestment Risk When yields shift theres a risk associated with reinves...View the full answer
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Related Book For
Fundamentals Of Investments Valuation And Management
ISBN: 9781266824012
10th Edition
Authors: Bradford Jordan, Thomas Miller, Steve Dolvin
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