If a yield curve is upward sloping, the investment strategy of buying long-term securities, then selling them after a short period (say, one year) is called
A) riding the yield curve.
B) liquidating the yield curve.
C) segmenting the yield curve.
D) a forward roll.
E) none of the above

Question

Quizplus · Accepted Answer

Riding the yield curve involves buying long-term securities and holding them until they mature, taking advantage of the upward slope of the yield curve. It does not involve selling after a short period, as described in the other choices.

If a Yield Curve Is Upward Sloping, the Investment Strategy