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An insurance company aims to structure a portfolio of assets and liabilities so that: Its assets and liabilities have equal present values and equal modified
An insurance company aims to structure a portfolio of assets and liabilities so that: Its assets and liabilities have equal present values and equal modified durations. The convexity of its assets exceeds the convexity of its liabilities. Determine which term precisely describes the companys position.
A. Diversified
B. Fully immunized
C. Fully leveraged
D. Exactly matched
E. Redington immunized
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