Daniel would like to diversify his portfolio in order to offset any negative fluctuations in his stock holdings. He is considering investing $10,000 in Treasury securities and is looking at a few alternatives. Create two portfolios with a Macaulay duration of 5 years. (There are more than two possible portfolios with Macaulay durations of 5 years but create only two.) Which of the two portfolios that you created should Daniel choose? Why? Convexity duration duration Price Yield yield/2 Coupon payment Maturity Type 1.49 1.00 0.97 94.44 5.80% 2.90% 0.00% 0.00 1 T-bill 4.43 1.91 1.85 100.09 6.15% 3.075% 6.20% 3.10 2 T-note 8.90 2.78 2.69 100.27 6.30% 3.15% 6.40% 3.20 3 T-note 21.31 4.34 4.20 100.42 6.50% 3.25% 6.60% 3.30 5 T-note 64.77 7.38 7.14 101.80 6.75% 3.375% 7.00% 3.50 10 T-note 265.30 13.31 12.86 88.09 6.95% 3.475% 6.00% 3.00 30 T-bond