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:

Empathetic

Refers to the ability to understand and share the feelings of another person from their perspective.

Increase Helping

Suggests strategies or approaches aimed at enhancing the willingness or frequency of individuals to provide assistance to others in need.

Group Project

A collaborative assignment or task undertaken by multiple individuals, often with the aim of achieving a common goal or project.

Greedy

Having or showing an intense and selfish desire for something, especially wealth or power, beyond one's needs.