Interest-rate risk is important to

Name: Interest-rate risk is important to
Brand: Quizplus
Rating: 4.9 (47 reviews)

Question

Quizplus · Accepted Answer

Interest-rate risk affects both active and passive bond portfolio managers because changes in interest rates can cause fluctuations in bond prices, resulting in potential gains or losses for the portfolio. Active managers may choose to actively adjust their portfolios in response to interest rate changes, while passive managers may choose to maintain a fixed allocation based on a particular benchmark index.

Interest-Rate Risk Is Important to