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The manager has noticed that the yield curve is upward sloping in this country. The current portfolio in this country is 60% in stocks and

  1. The manager has noticed that the yield curve is upward sloping in this country. The current portfolio in this country is 60% in stocks and 40% in bonds. Suggest changes to the portfolio based on this information.
    1. Shift money from stock to bond.
    2. Shift money from bond to stock.
    3. Sell all stock and bonds and only keep cash.
    4. Borrow more money and short stocks.

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