Use LEFT and RIGHT arrow keys to navigate between flashcards;
Use UP and DOWN arrow keys to flip the card;
H to show hint;
A reads text to speech;
6 Cards in this Set
- Front
- Back
|
Call option |
Negative Convexity |
|
|
Use of liab as benchmark |
Meet the requirement of % Index |
|
|
Use of Index as benchmark |
Meet the cash flow requirement |
|
|
Pure bond indexing |
Low advisory and administrative fees. Costly and difficult to implement. Lower expected return than the index. |
|
|
Enhanced indexing |
Cell matching. Maintains index to primary risk factors. Sampling. Primary risk factors. Reduced ability to track the index. |
|
|
Enhanced indexing by small risk factor mismatches |
Same duration as index Increased expected return Reduced manager restriction. Increased tracking error Increased management fee |
