Question
An NPS pension fund has a liability profile highly
sensitive to 5 year interest rate changes. The fund manager uses ALM to immunize duration. Suddenly, 5-year bond yields rise by 1.5%, and the duration of assets mismatches liabilities by +0.5 years. What is the most appropriate immediate action?Solution
With asset duration exceeding liability duration, a rate rise causes asset value to drop more than liability—a duration gap. The fund should hedge by entering into interest rate swaps or selling long-duration bonds to shorten asset duration and restore immunization.
What is the primary goal of access authentication in computer systems?
Consider the Quick Sort algorithm with the last element as the pivot. For the array [7, 2, 1, 6, 8, 5, 3, 4], what will be the state of the array *after...
A process makes a system call to request a resource. If the resource is unavailable, the process will typically transition to which state?
Non-Final state in DFA is represented by :
You have a list of numbers and need to find the maximum value. Which of the following approaches would be the most efficient in terms of time complexity?
Which access specifier makes members accessible only within the class itself?
Which of one the below options are the two different types of bus topology ?
For the system showm below calculate the transfer function.
What is the best case time complexity of merge sort?
When analyzing the performance of a sorting algorithm, what is a common operation to count for time complexity? Â
