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Which of the following is/are ways to immunize a bond portfolio? I. Cash Flow Matching II. Making the bond portfolios duration equal the time horizon

Which of the following is/are ways to immunize a bond portfolio? I. Cash Flow Matching II. Making the bond portfolios duration equal the time horizon III. Purchasing only U.S. Treasury bonds (which are considered risk free)

  • A. III only
  • B. II and III only
  • C. Both I and II
  • D. I, II, and III

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