Passive bond strategies include all of the following attributes except:
A) They are based on the proposition that bond prices are fairly determined leaving risk as the variable to control.
B) Once the bonds were purchased investors do nothing accepting changes in market conditions, securities and do on.
C) They are largely based on a buy-and-hold strategy.
D) They follow other bond portfolios and are an example of an indexing strategy.

Question

Quizplus · Accepted Answer

Passive bond strategies involve managing risk and may involve adjustments to the portfolio in response to changes in market conditions or the credit quality of the bonds, contrary to the idea that investors do nothing after purchasing the bonds.

Passive Bond Strategies Include All of the Following Attributes Except