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

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Definitions:

Employee Volunteerism

The act of employees volunteering their time and skills for community service projects or charitable causes, often supported or encouraged by their employer.

Variable Interval

In the context of behavioral psychology, a schedule of reinforcement where rewards are given after an unpredictable amount of time has passed, resulting in consistent behavior over time.

Vicarious Learning

The process of learning by observing the actions, consequences, and behaviors of others, without direct experience.

Empowerment

The process of giving people more control over their work or the power to make decisions affecting their life and work.