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NikAS [45]
3 years ago
14

Spice asks Meyers about how a fixed-income manager would position his portfolio to capitalize on expectations of increasing inte

rest rates. Which of the following would be the most appropriate strategy?a. Shorten his portfolio duration.b. Buy fixed-rate bonds.c. Lengthen his portfolio duration.
Business
1 answer:
Artist 52 [7]3 years ago
4 0

Answer:

a. Shorten his portfolio duration

Explanation:

The best action to take in order to capitalize on expectations of increasing interest rates would be to shorten his portfolio duration. This is because an increase in the interest rate causes his portfolio value to decrease, yet if the duration of his portfolio is shortened then the change/decrease in value will be lesser than if done otherwise.

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Answer: Steel; A mutual fund; the number of shares of stock sold in a previous day; Capital gains

Explanation:

1. Which example is an investment commodity?

Steel is an example of an investment commodity. A commodity is a raw material that one can purchase and later sell. Of all the examples given, steel is the right answer.

2. Which option allows you to pool your money and invest in a portfolio with other investors?

A mutual fund is a kind of investment whereby the money gotten from the investors is used to invest in bonds, stocks, bonds or any other investment. Mutual fund allows one to pool one's money and invest in a portfolio with other investors.

3. Which piece of information is typically included in a stock listing?

During stock listing, the number of shares of stock sold in a previous day are included.

4. Which type of investment income happens when an investor sells ownership in an equity investment that's gained value?

Capital gain is the profit that is made by a company when a capital asset, such as bond, stock or real estate is sold and the amount that the asset is sold is more than the purchase price.

The investment income that happens when an investor sells ownership in an equity investment that's gained value is capital gains.

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