You propose managing a portfolio of fixed income securities by utilising a passive strategy. Which of the following actions would your strategy involve? A)  Buying inflation linked bonds. B)  Buying index linked bonds. C)  Matching the fixed income securities to a stated performance benchmark. D)  Managing the sector-spread to benefit from a positive sloping yield curve.

Financial Management: Theory & Practice
16th Edition
ISBN:9781337909730
Author:Brigham
Publisher:Brigham
Chapter25: Portfolio Theory And Asset Pricing Models
Section: Chapter Questions
Problem 8MC: You have been hired at the investment firm of Bowers & Noon. One of its clients doesn’t understand...
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You propose managing a portfolio of fixed income securities by utilising a passive strategy. Which of the following actions would your strategy involve?
A)  Buying inflation linked bonds.
B)  Buying index linked bonds.
C)  Matching the fixed income securities to a stated performance benchmark.
D)  Managing the sector-spread to benefit from a positive sloping yield curve.

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