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CTP · Question #229
(Topic 3) A company has decided to manage its short-term investment portfolio in-house. It is looking for enhanced capital gains as well as the ability to sell the instruments on the secondary…
The correct answer is D. Total-return strategy. See the full explanation below for the reasoning.
Question
- (Topic 3)
A company has decided to manage its short-term investment portfolio in-house. It is looking for enhanced capital gains as well as the ability to sell the instruments on the secondary market at a premium. The investment manager has forecasted the interest rates shown below:
Which investment strategy should be employed by the company?
Options
- APassive strategy
- BMatching strategy
- CTax-based strategy
- DTotal-return strategy
How the community answered
(46 responses)- A4% (2)
- B17% (8)
- C9% (4)
- D70% (32)
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