In the Evaluation of Bond Portfolio Performance, the Analysis Effect

question 12

Multiple Choice

In the evaluation of bond portfolio performance, the analysis effect refers to

• A) The difference in portfolio duration and index duration.
• B) The extra return attributable to acquiring bonds that are temporarily mispriced relative to risk.
• C) To short-run changes in the portfolio during a specific period.
• D) The differential return from changing duration of the portfolio during a specific period.
• E) None of the above

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