Which of the following fixed income strategies uses a sampling approach with the objective of matching primary index risk factors and earning a higher return?

A) Enhanced indexing by matching primary risk factors

B) Active management by larger risk factor mismatches

C) Pure bond indexing

D) Enhanced indexing by small risk factor mismatches

An equal shift in interest rates across all maturities of the yield curve is called a(n) _____. A change in interest rates that causes the slope of the yield curve to change is called a _____.

A) twist; parallel shift

B) parallel shift; twist

C) average shift; sampling

D) sampling; cash flow movement