"As perhaps their primary responsibility, fixed-income managers control the _____ of their portfolios."
A) default risk
B) reinvestment rate risk
C) durations
D) call features

Question

Quizplus · Accepted Answer

Fixed-income managers primarily control the durations of their portfolios to manage interest rate risk and align with their investment strategy. Duration measures the sensitivity of a bond's price to changes in interest rates, making it a crucial aspect for fixed-income managers to manage.

"As Perhaps Their Primary Responsibility, Fixed-Income Managers Control the _____