bond

问题如下：

To better familiarize himself with the various managers the fund employs, Moore continues to study Cook’s report showing the various components of the fundamental law of active management. He notes the committee has yet to talk about the fixed-income advisers used by the fund. He is curious how the fundamental law of active management applies to the analysis of fixed-income managers and asks Cook for her opinion.

How should Cook most likely respond to Moore’s request for her opinion?

选项：

A.

There is a lack of decision independence.

B.

There are no limitations for using the fundamental law across all asset classes.

C.

There is more accuracy when accessing the skill level.

解释：

A is correct. A limitation of the fundamental law with the active management of fixed-income portfolios is the lack of decision independence. Virtually all bonds have some form of duration risk, credit risk, and optionality, so their returns are highly correlated in subtler ways.

B is incorrect. Limitations do exist for utilizing the fundamental law for evaluating active fixed-income strategies.

C is incorrect. The assessment process is similar when looking at the skill level across all asset classes. However, forecasting ability probably differs among different asset segments and varies over time.