Managers of bond portfolios who anticipate an increase in interest rates should:
A) assume higher risk in the secondary market.
B) increase the portfolio duration.
C) invest in high-yield or junk bonds.
D) decrease the portfolio duration.
Answer: D
Investments Chapter | Multiple Choice | Questions and Answers | Test Bank
A) assume higher risk in the secondary market.
B) increase the portfolio duration.
C) invest in high-yield or junk bonds.
D) decrease the portfolio duration.
Answer: D