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NEW QUESTION: 1
Immunization theory says that:
A. Performance matching requires rebalancing the expense portfolio, but the theoretically correct answer is to rebalance continuously as and when needed only.
B. Investment matching requires rebalancing the liabilities portfolio, but the theoretically correct answer is to rebalance annually.
C. duration matching requires rebalancing the asset portfolio, but the theoretically correct answer is to rebalance continuously.
D. Balance matching requires rebalancing the revenues portfolio, but the theoretically correct answer is to rebalance continuously.
Answer: C

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