Part 1

Which of the following statements is true about immunization?

It is an active bond management technique with the purpose of identifying undervalued bonds.

Its main purpose is to protect net worth from exchange rate risk.

It is a strategy used in the forecasting of bond returns based on predictions of the yield curve at the end of the investment horizon.

Its main purpose is to offset the price and reinvestment risk and to protect a fund's net worth from interest rate volatility.