In a ladder strategy,
A) one-half of funds are invested in short duration bonds, and the rest are invested in long duration bonds.
B) 75 percent of funds are invested in short duration bonds, and the rest are invested in long duration bonds.
C) 25 percent of funds are invested in short duration bonds, and the rest are invested in long duration bonds.
D) an equal amount of funds is invested in a wide range of maturities.
E) all the funds are invested in long duration bonds.

Question

Quizplus · Accepted Answer

In a ladder strategy, funds are allocated across a range of maturities, typically in equal amounts, to balance the risk and return by capturing the benefits of both short and long-term bonds.

In a Ladder Strategy