If interest rates are expected to rise, the portfolio manager might logically
A) raise duration
B) lower duration
C) lower average yield
D) lower average bond rating

Name: If interest rates are expected to rise, the portfolio manager might logically A) raise duration B) lower duration C) lower average yield D) lower average bond rating
Brand: Quizplus
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Question

Quizplus · Accepted Answer

Lowering duration reduces the portfolio's sensitivity to interest rate changes, which is beneficial when interest rates are expected to rise.

If Interest Rates Are Expected to Rise, the Portfolio Manager