Relative value trade and indexing

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Reference no: EM131054683

1. How much to allocate between stocks and bonds is an asset allocation question. True or False

2. Relative value trade is: (a) Investing the same amount in long term bonds in a rolling period; (b) Investing the same amount in long term bonds in a rolling period; (c) Mimicking the portfolio of a bond index; (d) Buying under-priced bonds using various bond pricing models; (e) Betting on future Interest rate movement

3. Indexing is: (a) Investing the same amount in long term bonds in a rolling period; (b) Investing the same amount in long term bonds in a rolling period; (c) Mimicking the portfolio of a bond index; (d) Buying under-priced bonds using various bond pricing models; (e) Betting on future Interest rate movement

Reference no: EM131054683

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