Moving to Higher Yield Bonds,usually with Longer Maturities Is Called

question 79

Multiple Choice

Moving to higher yield bonds,usually with longer maturities is called ________.

• A) a substitution swap
• B) an intermarket spread swap
• C) rate anticipation swap
• D) pure yield pickup swap

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Definitions:

Fund Returns

The profit or loss on an investment over a specific period, often expressed as a percentage of the investment's initial value.

Asset Allocation

Asset allocation is an investment strategy that aims to balance risk and reward by apportioning a portfolio's assets according to an individual's goals, risk tolerance, and investment horizon.

Information Ratio

A ratio used to measure the return of a portfolio or fund relative to its risk, often used to assess the skill of a portfolio manager.

Risk-Free Return

The theoretical return attributed to an investment with zero risk, typically associated with government bonds.