As an active portfolio manager for our EFIF, which of the following strategies are you most likely to employ in your portfolio?

• A. If you expect interest rate to decrease, you will decrease the duration of the portfolio.
• B. If you predice a slow or poor economy, you will expect interest rates to increase and will therefore increase the duration of the portfolio.
• C. If you expect future interest rates to remain unchanged, it would be feasible to consider generating additional interest income by investing in longer maturity (or higher duration) investments.
• D. If you expect the economy to improve, you will expect credit spreads to widen/increase and will therefore avoid high yield investments.