Q2.“Managing fixed income investments to achieve of a particular objective – usually maximizing return on investment by minimizing risk and managing interest rates. The management of the portfolio can be done by professional investment managers or investors can manage themselves.The returns of bonds are influenced by a number of factors: changes in interest rates, changes in the credit ratings of the issuers, and changes in the yield curve. The management of a bond portfolio either to increase returns based on anticipated changes in these bond-pricing factors or to maintain a certain return regardless of changes in those factors". Is there any process/strategy to manage? Explain in details with relevant examples.
Q2.“Managing fixed income investments to achieve of a particular objective – usually maximizing return on investment by minimizing risk and managing interest rates. The management of the portfolio can be done by professional investment managers or investors can manage themselves.The returns of bonds are influenced by a number of factors: changes in interest rates, changes in the credit ratings of the issuers, and changes in the yield curve. The management of a bond portfolio either to increase returns based on anticipated changes in these bond-pricing factors or to maintain a certain return regardless of changes in those factors". Is there any process/strategy to manage? Explain in details with relevant examples.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
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Transcribed Image Text:Q2.“Managing fixed income investments to achieve of a particular objective – usually maximizing return
on investment by minimizing risk and managing interest rates. The management of the portfolio can be
done by professional investment managers or investors can manage themselves.The returns of bonds are
influenced by a number of factors: changes in interest rates, changes in the credit ratings of the issuers,
and changes in the yield curve. The management of a bond portfolio either to increase returns based on
anticipated changes in these bond-pricing factors or to maintain a certain return regardless of changes in
those factors". Is there any process/strategy to manage? Explain in details with relevant examples.
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