Which of the following statements is true if yield levels increase by 50 bps? A. The active
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Which of the following statements is true if yield levels increase by 50 bps?
A. The active portfolio will outperform the index portfolio by approximately 61 bps.
B. The index portfolio will outperform the active portfolio by approximately 61 bps.
C. The index portfolio will outperform the active portfolio by approximately 21 bps.
A financial analyst at an in-house asset manager fund has created the following spreadsheet of key rate durations to compare her active position to that of a benchmark index so she can compare the rate sensitivities across maturities.
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To determine the impact of a 50 basis points bps increase in yield on the relative performance of th...View the full answer
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