Performing a barbell portfolio with the same dollar duration

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Reference no: EM131781149

Question: Explain why you agree or disagree with the following statements:

a. "It is always better to have a portfolio with more convexity than one with less convexity."

b. "A bullet portfolio will always out perform a barbell portfolio with the same dollar duration if the yield curve steepens."

Reference no: EM131781149

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