Finance

Dedicated Portfolio Theory

Dedicated Portfolio Theory

Dedicated Portfolio Theory is usually a passive form involving portfolio management that requires the matching involving future cash inflows having future liabilities. The process involving dedicating a portfolio can be utilised choice to multiperiod immunization, which reduces how much interest rate risk to which a new portfolio is shown. Dedicated portfolio theory, in finance, deals with the characteristics and features of a portfolio created to generate a foreseeable stream of future cash inflows.