Question: 14. Assuming that you expect the currently upward sloping yield curve to atten (i.e., short rates will rise while long rates will remain relatively stable.

14. Assuming that you expect the currently upward sloping yield curve to atten (i.e., short rates will rise while long rates will remain relatively stable. Would you prefer to be invested in a barbell or a bullet portfolio, and clarify why your selection would be preferred? [8 points]

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