Source: FT Adviser, August $27,2012$

What does the news clip mean by "underperformance"?

By "underperformance" the news clip means

that

A$.$ the price of the fund is lower than expected

B$.$ investment advisors are doing a poor job at

advising their clients

C$.$ interest rates are rising but at a lower rate than

expected

D$.$ the increase in popularity of certain funds

increases their supply and lowers their price

Why might it be smart to avoid some bonds if

interest rates are about to rise?

It might be smart because

A$.$ when interest rates rise, bond prices fall

and bond yields decrease

B$.$ interest rates and bond prices move in

opposite directions

C$.$ it is safer to hold stocks

D$.$ rising interest rates make bond prices

unpredictable