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The insurance company has recently sold large amount of bonds and invested the proceeds in real estate. Its logic was that this would reduce the

The insurance company has recently sold large amount of bonds and invested the proceeds in real estate. Its logic was that this would reduce the exposure of its assets to interest rate risk. Do you agree? Explain.

This insurance company currently has a small amount of stock. The company expects that it will need to liquidate some of its assets soon to make payments to beneficiaries. Should it shift its bond holdings into stock in order to strive for a higher rate of return before its need to liquidate this investment?

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