1. One of the major problems with behavioral finance is

a) behavioralists can always find some pattern in past data that supports behavioralist traits but is not tradable in the future

b) human beings are active traders

c) men are more active traders than women

d) it depends on how you frame the question

2. Which of the following bonds would most likely sell at the lowest yield?

a) a non callable corporate bond

b) a callable Treasury bond

c) a non callable Treasury bond

d) a callable corporate bond

3.Which type of risk is most significant for bonds with a short maturity and a high coupon?

a) interest rate risk

b) absolute risk

c) reinvestment rate risk

d) arbitrage risk