A Portfolio Is Equally Invested in Securities with 1-, 2-

question 5

Multiple Choice

A portfolio is equally invested in securities with 1-, 2-, and 3-years to maturity. Each year as the 1-year securities mature, the funds are reinvested in 3-year securities. This is an example of which investment strategy?

• A) Barbell maturity strategy
• B) Riding the yield curve
• C) Laddered maturity strategy
• D) Timing maturity strategy
• E) Cycle maturity strategy

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Definitions:

Security Needs

Denotes the essential protection and safety measures individuals or entities seek to ensure their well-being and safeguard against risks.

Maslow's Hierarchy

is a psychological theory proposed by Abraham Maslow that ranks human needs in a pyramid, from basic physical needs to higher-level psychological needs and self-actualization.

Organization

Any group or aggregation of individuals into a purposeful entity, such as those found in business and industry, government, and the social community; also, the process of aligning people and resources to accomplish tasks (visions, goals, initiatives, and the like).

Recognition Needs

The requirement for acknowledgment and appreciation from others, often as a motivator in workplace settings.