The following appears in big bold letters in a publication by State Street Global Investors' publication, "Beyond Active and Passive: Advanced Beta Comes of Age" (2014):

But in recent years, a "third approach" has emerged that blurs the

boundaries between alpha and beta.

Explain what this statement means.

The spectrum of bond strategies contains two general categories of strategies. First, a passive (beta) strategy is pursued if an investor believes the bond market is price efficient and the benchmark selected whose performance is replicated is a market-cap-weighted bond index. Second, an active (alpha) strategies is followed when the presumption is that there are pockets of price inefficiency that can be capitalized upon to outperform a market-cap-weighted bond index.