If a Yield Curve Is Upward Sloping, the Investment Strategy

question 4

Multiple Choice

If a yield curve is upward sloping, the investment strategy of buying long-term securities, then selling them after a short period (say, one year) is called

• A)riding the yield curve.
• B)liquidating the yield curve.
• C)segmenting the yield curve.
• D)a forward roll.
• E)None of these are correct.

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Definitions:

Vestibular Sac

A part of the inner ear involved in balance, helping to sense changes in head position and movement.

Auditory Canal

The part of the ear through which sound waves travel toward the eardrum, also known as the external auditory meatus.

Semicircular Canal

One of three fluid-filled tubes in the inner ear that play a key role in maintaining balance by detecting head movement and rotation.

Cochlear Implant

A cochlear implant is a surgically implanted electronic device that provides a sense of sound to a person who is profoundly deaf or severely hard of hearing.