The correlations among the U.S. investment-grade-bond series were very high because all rates of return for investment-grade bonds over time are impacted by common macroeconomic variables.

Question

Quizplus · Accepted Answer

The statement is true. Investment-grade bond returns are influenced by macroeconomic variables such as inflation, interest rates, and economic growth, which affect all bonds in the same way, resulting in high correlations among the series.

The Correlations Among the U