reading 25…question 27 page 143…why is it A? they state the immunized approach is with noncallable bonds. i thouht it was c since there is no mention of callable or mbs bonds. it also says ealier in item set that there are no bonds with embedded options in the portfolio.
it asks about risks in the liability portfolio - while you are talking about risks in the asset side (which is how they intend to fund).