1. Based on the concept of adverse selection we would expect that the September IPO of Third Harmonic Bio (a biotech firm) would have ___________ (risk-adjusted) performance.

A. excellent

B. average

C. good

D. poor

2. The Fed determines which of the following rates?

I. the fed funds rate

II. the discount rate

III. the overnight repo rate

A. II only

B. I only

C. I and II only

D. II and III only