If a bond portfolio manager believes
A) in market efficiency,he or she is likely to be a passive portfolio manager.
B) that he or she can accurately predict interest rate changes,he or she is likely to be an active portfolio manager.
C) that he or she can identify bond market anomalies,he or she is likely to be a passive portfolio manager.
D) a and b.
E) a,b,and c.

Question

Quizplus · Accepted Answer

A passive portfolio manager believes in market efficiency and thus does not try to outperform the market, while an active portfolio manager believes they can predict interest rate changes or identify market anomalies to achieve better returns.

If a Bond Portfolio Manager Believes