The November 26, 1990, issue of Bond Week includes an article, “Van Dampen Merritt Shortens.” The...

The November 26, 1990, issue of Bond Week includes an article, “Van Dampen Merritt Shortens.” The article begins as follows: “Peter Hegel, first v.p. at Van kampong Merritt Investment Advisory, is shortening his $3 billion portfolio from 110% of his normal duration of six years to 103–105% because he thinks that in the short run the bond rally is near an end.” Explain Hegel’s strategy and the use of the duration measure in this context.