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A fixed income portfolio manager has just received an exclusive forecast calling for a significant decline in inflation. The most appropriate action for the portfolio
A fixed income portfolio manager has just received an exclusive forecast calling for a significant decline in inflation. The most appropriate action for the portfolio manager to take in response to the forecasted decline in infliation is to
A. Shorten the maturity of the portfolio
B. Lengthen the maturity of the portfolio
C. Move a greater portion of the portfolio into money market instruments
D. Rebalance the portfolio with convertible securities
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