A portfolio manager for a general insurance company who expects a downturn in the markets is likely to shift more of the company's portfolio into:

Question

Quizplus · Accepted Answer

To mitigate risk during a downturn in the markets, the portfolio manager of a general insurance company would likely shift more of the company's portfolio into short-term securities. These securities generally have less volatility and less credit risk compared to common stock and long-term corporate bonds. Additionally, they provide liquidity that can be used to take advantage of investment opportunities that may arise during the downturn.

A Portfolio Manager for a General Insurance Company Who Expects