A portfolio manager invests in the U.S. and euro bond markets. Returns are measured in dollars. How

Question:

A manager invests in the U.S. and euro bond markets. Returns are measured in dollars. How many important factors are likely to show up in a principal components analysis applied to these markets?
Portfolio
A portfolio is a grouping of financial assets such as stocks, bonds, commodities, currencies and cash equivalents, as well as their fund counterparts, including mutual, exchange-traded and closed funds. A portfolio can also consist of non-publicly...