What is duration matching in immunization strategies?

• A. Immunization uses duration to balance price risk but not reinvestment risk.
• B. Immunization uses duration to balance price risk and reinvestment risk, aligning portfolio duration with investment horizon to protect against interest rate movements.
• C. Immunization ignores duration and relies on diversification.
• D. Immunization uses duration only for forecasting inflation.

Answer: (B)