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You manage an actively managed bond fund and you are forecasting an unexpected strengthening of the U.S. economy. To take advantage of your forecast you

You manage an actively managed bond fund and you are forecasting an unexpected strengthening of the U.S. economy. To take advantage of your forecast you would

  • A. lengthen the duration of your bond portfolio

  • B. shorten the duration of your bond portfolio

  • C. match the duration of your portfolio to your investment horizon

  • D. try to take advantage of carry trade arbitrage.

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