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1. (10 points) Briefly discuss the following statements (approx. 100 words each): (a) You should not own government bonds when yields are low. (b)

1. (10 points) Briefly discuss the following statements (approx. 100 words each): (a) You should not own government bonds when yields are low. (b) The CEO of Goodman's Socks has just announced new losses. The stock price jump at the announcement. Explain if it is possible, and why.

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