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The manager of a bond fund who purchases bonds with high, positive convexity for the portfolio is likely to expect which of the following to
The manager of a bond fund who purchases bonds with high, positive convexity for the portfolio is likely to expect which of the following to occur in the future
- Interest rates will remain exactly the same.
- Interest rates will rise rapidly.
- Interest rates will change very little.
- Daily changes in yield on corporate bonds will experience high volatility.
Group of answer choices
II and IV
I and III
I only
III only
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