1) Asset allocation means the allocation of an investment portfolio across broad asset classes. What are these four broad asset classes? a) b) c) d) 2) Investment firms that specialize in taking firms "public" involve a firm issuing an IPO. What is an IPO? Name at least two things an IPO accomplishes for the firm that issues the IPO. (The issuing firm, not the Investment bank) 3) What is the difference in the initial maturities of treasury bills, notes and bonds? That is, what are the maturity date or dates of these securities when initially issued by the US Treasury? 4) A treasury security with a face value of $10,000 trading at pay pays $100 of interest every six months. If you buy this treasury security, what is the approximate annual dollar amount of interest will you earn in one year? What is the approximate annual percentage yield to you on this security? a) S b) 5) You are considering purchasing a five year fixed income security. You see that you have a choice of a high quality municipal bond paying 3% annual interest or a high quality corporate bond paying 4% annual interest. You are in a 40% tax bracket, which of these two bonds will give you the highest after tax return? Show your work