Reading20, EOC 14

14 Based on Exhibit 3, the total expected return of Hirji’s barbell portfolio is closest to:

I could not figure out the why they have used Distractor A and Distractor B solution for calculating the component of Total Expected Return E(change in price based on yield view)
Any hints?


You can safely ignore the last two columns on Distractor A and B. Just apply the expected return framework as shown in the examples.

Thanks Mate

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