Which of the Following Is a Passive Bond Portfolio Strategy

question 57

Multiple Choice

Which of the following is a passive bond portfolio strategy?

• A) Indexing
• B) Buy-and-Hold
• C) Classical immunization
• D) Choices a and b
• E) None of the above

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Definitions:

Consumption Bundle

A collection of goods or services that a consumer selects for purchase, representing a combination of different items that provide utility.

Income

The total money received by an individual or household from various sources, including wages, salaries, benefits, and investments.

Convex Preferences

In consumer theory, these are preferences where blends or combinations of two goods are preferred to extreme allocations, reflecting a desire for balance.

Indifference Curve

A graph representing different bundles of goods between which a consumer is indifferent, showing the combination of two goods that give the same level of satisfaction to the consumer.