An example of an active strategy for bond management would be
A) buy and hold.
B) credit analysis.
C) indexing.
D) classical immunization.
E) horizon matching.

Question

Quizplus · Accepted Answer

Credit analysis involves actively researching and choosing individual bonds based on their creditworthiness and risk. This is contrasted with passive strategies such as indexing, buy and hold, and classical immunization, which involve buying a diversified portfolio of bonds without much active management. Horizon matching involves matching the maturity of the bond portfolio to the investor's investment horizon, but this is more of a passive strategy that does not actively manage credit risk.

An Example of an Active Strategy for Bond Management Would