The question is on page 297. 
In the answer, it says the total expected return = yield income + rolldown return + E(change in price based on the yield view). So the correct answer is 5%+2.1%-0.35%=6.75%.
My question is, why we should minus subtract 0.35% not +0.35%? (That is, 5%+2.1%+0.35%=7.45%)
The expected yield view change in price is 0.35% as stated. Was the yield view increasing or decreasing? If increasing, then you subtract. If decreasing yield, then you add.
What was the rest of the question?
Thanks for your reply.
Can you see the attached picture? That’s all we have, the 2nd question is not related. It doesn’t mention whether the yield is expected to increase or not. However, the expected price change, 0.35%, is positive. Isn’t yield decreasing?
The vitalbook version of Schweser notes I have says “-0.35”
They must have left out the negative in your version…
The vitalbook version of Schweser notes I have says “-0.35”
They must have left out the negative in your version…
I see…
Thank you very much!