__________ Requires an Investor to Identify Bonds with Superior Returns

question 35

Multiple Choice

__________ requires an investor to identify bonds with superior returns and similar characteristics to existing bonds,and to liquidate current bonds and purchase higher yielding bonds.

• A) Security selection
• B) Market timing
• C) Riding the yield curve
• D) Bond swapping

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Definitions:

Psychoanalytic Theory

A theory of psychology and human behavior which posits that unconscious motives and conflicts shape personality and mental disorders.

Collective Unconscious

According to Jung, a storehouse of latent memory traces inherited from people’s ancestral past that is shared with the entire human race.

Defense Mechanism

Psychological strategies used unconsciously to protect oneself from anxiety arising from unacceptable thoughts or feelings.

Repression

A defense mechanism whereby distressing thoughts, memories, or desires are kept out of conscious awareness.