question archive Table One shows the allocations of an actively managed portfolio and actively managed portfolio benchmark index by sector
Table One shows the allocations of an actively managed portfolio and actively managed portfolio benchmark index by sector
Subject:FinancePrice: Bought3
Table One shows the allocations of an actively managed portfolio and actively managed portfolio benchmark index by sector. The benchmark index is broken down into three sectors: (1) short maturity, (2) intermediate maturity and (3) long maturity bonds.
Table One
Actively Managed Portfolio and Benchmark Index Portfolio Allocations
|
|
|
Portfolio Allocations |
|
|
Sector |
Modified Duration |
Benchmark |
Actively Managed |
|
Short Maturity |
3.1 |
30% |
34% |
|
Intermediate Maturity |
6.2 |
40% |
32% |
|
Long Maturity |
9.3 |
30% |
34% |
1a. Does the actively managed portfolio manager have a view that rates will increase, rates will decrease or no rate view.
1b. Does the actively managed portfolio manager have a view that the yield curve will steepen, the yield curve will flatten, or no curve shape view.
Please provide your answer justification in excel if applicable and show all formulas. If not a detailed written response is acceptable. I will like if correct and the explanation is sufficient!
