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 the above

---

Definitions:

Settling Down

The process of establishing a more stable and permanent lifestyle, often involving securing long-term housing and employment.

Symbolic Interactionist

A perspective in sociology that focuses on the significance of meaning and symbols in human interactions and how social reality is constructed through them.

Conflict Theorist

A social scientist who studies the ways in which different groups in society struggle for power, often focusing on issues of inequality, discrimination, and social change.

A Functionalist

Pertains to a perspective in sociology that views society as a complex system whose parts work together to promote solidity and stability.