Use the following information to answer question a.

Ntabeni Capital is an asset management company that is considering utilizing portfolio immunization strategies. The managers of Ntabeni Capital hired a consultant to train its staff on portfolio immunization.

Following are some of the statements that were made during the training:

(i) A great thing about immunization is that it is a set-and-forget strategy. That is, once you have immunized your portfolio, there is no subsequent work to be done.

(ii) The immunization target rate of return is less than yield to maturity.

(iii) If a portfolio is immunized against a change in the market yield at a given horizon by matching portfolio duration to horizon, the portfolio faces no risk except for default risk.

(iv) The liquidity of securities used to construct an immunized portfolio is irrelevant.

(v) In general, the entire portfolio does not have to be turned over to rebalance an immunized portfolio. Furthermore, rebalancing need not be done on a daily basis.

a) Critique each of the above statements by stating if you agree or disagree.