Answer: upward sloping.

The **rolling down the yield curve** strategy delivers the highest relative returns when the curve is **upward sloping**. This is because: - Rolling down the yield curve involves buying bonds with maturities longer than the investment horizon - As time passes, the bond's remaining maturity decreases, and it "rolls down" to lower yields on the curve - The steeper the upward slope, the greater the yield decline as the bond moves down the curve - This yield decline translates into price appreciation, generating additional returns beyond the coupon income With a flat or downward sloping curve, there is little or no yield advantage to be gained from this strategy.

Author: LeetQuiz Editorial Team