As manager, you would like to maintain the portfolio's dollar duration at the initial level by rebalancing the portfolio. You choose to rebalance using the existing security proportions of one-third each. Calculate:
A. the dollar durations of each of the bonds.
B. the rebalancing ratio necessary for the rebalancing.
C. the cash required for the rebalancing.
Answer: C. the cash required for the rebalancing.
Business
You might also like to view...
The company has little influence on what external stakeholders should think or say about it
Indicate whether the statement is true or false
Business
This term describes a set of skills necessary to perform a specific job or a group of similar jobs
A) skill range B) skill grade C) skill block D) skill structure
Business