31.3 and 31.4 of Market Risk

[pmf0770]

You wrote in the answer 31.3: "Then for a small yield change, the bullet outperforms due to its relative yield advantage...". However, the answer was given as A: "Barbell outperforms bullet".

Is this a trivial typo or is there anything deep as you wrote: "please note that EXPECTED RETURN is different than RETURN PROFILE "?
Thx.

 

[David Harper CFA FRM]

Typo, you can check for updates in the topic forums: http://forum.bionicturtle.com/threads/l2-t5-31-hedging-with-bullet-versus-barbell.3461/