Question $16$

$3\mathrm{.}33$ pts

Suppose that you are a fixed$-$income portfolio manager running a fully active managed fund. Which of the following statements are true?

The duration of your portfolio matches that of a bond benchmark or index.

The aggregate credit risk of your portfolio matches that of a bond benchmark or index.

Your portfolio matches the duration of a bond benchmark or index, although other factors $($such as sectors$,$ quality, callability, etc.$)$ may diverge.

The aggregate interest$-$rate sensitivity of your portfolio matches that of a bond benchmark or index, although other factors. $($such as sectors$,$ quality, callability, etc.$)$ may diverge.

None of the above statements are true.