___ management of a bond portfolio is based on the belief that the bond market is not perfectly efficient.

Question

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Active management of a bond portfolio involves analysis of market conditions and individual bond characteristics to make strategic buying and selling decisions. This approach assumes that the bond market is not perfectly efficient and that skilled management can outperform the market. Passive management, on the other hand, involves purchasing a diversified portfolio of bonds and holding them for the long term, with minimal trading or analysis. Buy-and-hold management is similar to passive management, but with a focus on holding the bonds until maturity. Dynamic management involves adjusting the portfolio in response to changing market conditions, but not necessarily with a focus on outperforming the market.

___ Management of a Bond Portfolio Is Based on the Belief