According to the yield curve strategy reading, the buy and hold strategy is an active strategy.
If we expect the yield curve not to change, we can make a bit more of a return by taking more duration.
Ok here is where I don’t get this part.
When we expect the rates to lower, we take more duration and when we expect the rates to rise, we take less duration, but what I don’t get is if the yield curve is expected to be stable, how are we benefiting from more duration?
You’re not.
With a normal (i.e., upward sloping) yield curve, if you expect the curve to be stable (so that you really don’t care about duration), you get a higher yield with a longer maturity, and a byproduct of a longer maturity is a longer duration.
ok so it’s really about the longer time to maturity
and why do we say that buy and hold is actually an active management strategy and not a passive strategy? what are we doing differently to consider it as an active management strategy
I thought that the curriculum made that pretty clear: we can buy and hold bonds that are different from those in the benchmark.
yes, that I know. I guess there is nothing wrong with clarifying .
because if you check elsewhere, they will tell you that buy and hold is a passive strategy.
Welcome to the CFA curriculum.
thank you though 
My pleasure.
Why they say active risk and not passive is it say that strategy can be quite aggressive because it introduce liquidity risk. Holding less liquid and more higher yield bonds.
Not necessarily.
You can use longer maturity Treasuries; the liquidity risk is negligible.