bosses please help,
(refering to MM mock #2 Q8, Q9)
Q8-A, i got very messed up on this one: interest rates in EU and US are historically low, and advisors are expecting rates to INCREASE SOON … So i kept thinking it’s related to buying/selling convexity during volatile interest environment, thus the first option i eliminated was Buy MBS ( which turns out to be the bond you want to add to portfolio) . Please help
Q9-A, in general how do you decide when to choose “no” and when to choose"cannot be determined"? reading the guideline answers, i felt MM gives same justification for Manager A & B, but A is said to be “no, not matching his stated strategy”, B is said “cannot be determined”
Thanks