L3 Fixed Income Performance Attribution

I wonder if some one can help me. Schweser book 6, p193, Example 5.

It asked which decision had the most positive effect on the performance
a. taking duration
b. …
c. overweight long end of yield curve

How is a and c different? They seem to be the same action to me.


If by “taking duration” they mean “adding duration”, then I agree; they sound the same.

Was B the correct answer?

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yea c is the correct answer… I can only guess, it implies overweight long end of yield curve will increase duration. But the answer is not a because duration strategy may not necessarily overweight long end of yield curve, i.e. it could be overweighting mid-curve and duration still increases. so technically is not an inclusive answer.

Without seeing the question in full, it’s hard to say whether A and C should be construed as equivalent.

Note that sometimes third party prep providers have questions in which they try to be too subtle for their own good.