The principle of duration matching is not
A)used only in bond portfolio management.
B)a useful concept for investments with target dates.
C)matching one's assets to one's objectives.
D)a useful concept for investments with target dates or matching one's assets to one's objectives.

Question

Quizplus · Accepted Answer

The principle of duration matching is used in various financial contexts, not just bond portfolio management. It involves aligning the duration of assets and liabilities to manage risk, particularly interest rate risk, and can be applied in different investment strategies and financial planning scenarios beyond just bonds.

The Principle of Duration Matching Is Not