1. Short Answer Questions (12 Marks) a) If the stock market is on the strong form efficient, do we still need portfolio managers? If we do, what can portfolio managers do for investors? Can portfolio managers beat market? If we do not, explain reasons. 9 Marks) b) An investment business would like to growth quickly, please list three potential shortcuts that could help the business quickly success in a short-term? (3 Marks) of He A 30-year maturity bond making annual coupon payments with a coupon rate of 12% as duration of 11.54 years and convexity of 192.4. The bond currently sells at a yield to maturity of 8%. lre C1 What will be the bond price now? To find the price of the bond if its yield to maturity falls to 7% or rises to 9%. What prices for the bond at these new yields would be predicted by the duration rule and the duration-with-convexity rule? What is the percentage error for each rule? What do you conclude about the accuracy of the two rules? a) b) c) (8 Marks)