1.

Which component would be least likely to influence expected return on a global sovereign bond portfolio?

Group of answer choices

Rolldown return

Expected credit losses

Expected currency return

2.

A financial intermediary arranges for a portfolio manager to borrow securities from one client to facilitate settlement of a short sale at another client. The term may last up to 270 days. This transaction will most likely be considered a:

Group of answer choices

bilateral repurchase agreement.

trilateral repurchase agreement.

speculationmotivated securities lending agreement.

3.

A portfolio manager with only taxable clients makes the following statements:

Statement 1: Managers should sell only overvalued positions rather than fairly valued or undervalued positions.

Statement 2: Managers should not realize capital losses for taxable investors.

Which of the following is correct regarding the two statements?

Group of answer choices

Only Statement 1 is correct.

Only Statement 2 is correct.

Neither statement is correct.

4.

Which of the following assets would a fixedincome investor interested in return enhancement and diversification be most likely to add to a diversified domestic bond portfolio?

Group of answer choices

Fixedcoupon bonds

Inflationlinked bonds

Emerging market bonds

5.

Which of the following best characterizes a liabilitybased mandate to ensure that a portfolio has sufficient assets to meet liabilities while allowing active management of surplus assets?

Group of answer choices

Duration matching

Active management

Contingent immunization