Interest-Rate Risk Is Important to

question 4

Multiple Choice

Interest-rate risk is important to

• A) active bond portfolio managers.
• B) passive bond portfolio managers.
• C) both active and passive bond portfolio managers.
• D) neither active nor passive bond portfolio managers.
• E) obsessive bond portfolio managers.

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Definitions:

Critical Thinking Strategies

Techniques and methods employed to analyze information objectively and make reasoned judgments.

Promising Option

A potential course of action or solution that appears to have a good chance of success or effectiveness in a given context.

Precautions

Protective measures taken in advance to reduce the risk of harm or error.