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You are managing a bond portfolio that has a current value of $550 million. You have recently rebalanced your portfolio to significantly lower the portfolio
You are managing a bond portfolio that has a current value of $550 million. You have recently rebalanced your portfolio to significantly lower the portfolio duration. 4 pts a. What does this action suggest about your expectations regarding future interest rate changes? b. Explain, briefly, how moving to a lower portfolio duration will benefit your portfolios performance if you are correct about future interest rates (be specific).
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