Buy and hold - passive strategy, Financial Management

A simple passive strategy involves building a portfolio and holding it through time. The coupons as well as the proceeds of matured bonds are just reinvested in new issues. Generally, some control exists on the level of risk. The most common type of control is to set the duration of the bond portfolio equal to the duration of the relevant index. In this way, interest rate risk can be controlled.

Posted Date: 9/11/2012 2:07:53 AM | Location : United States







Related Discussions:- Buy and hold - passive strategy, Assignment Help, Ask Question on Buy and hold - passive strategy, Get Answer, Expert's Help, Buy and hold - passive strategy Discussions

Write discussion on Buy and hold - passive strategy
Your posts are moderated
Related Questions
Explain learning outcomes of financial management By the end of this subject guide as well as having done the relevant readings and activities you should be able to

Generally, an interest rate or an interest rate index is used as a reference rate for However, through financial engineering, issuers have been able to construct

The process by which an organization increase money by issuing equity and gets listed on a public stock exchange.

Why is the coefficient of variation a better risk calculates to use than the standard deviation while evaluating the risk of capital budgeting projects? The coefficient of variat

Categorization of management risk: Once each event has been evaluated, and been classified as to its probability and impact, the next step is to categorise those events. To do

Can a business have a positive accounting profit and a negative economic profit? Please explain.

Suppose you have recently been contracted as a financial consultant to a London-based engineering company, Alpha Products Plc. The company uses three components as part of their pr

What does the "weight" refer to in the weighted average cost of capital? The weight pass on to in weighted average cost of capital refers to the portion of the total capital in

Write an essay explaining that the quantities of goods and services that we can produce are limited by both our available resources and by technology. Assume we want to increase

Following is the information furnished by a private port for investing Rs. 10 crore in a 20 Tonne Gantry Crane. The entire funding is from a loan carrying an interest of 11%. The l