Question
1. T or F: For holders of bonds, investment horizon is always equal to time to maturity 2. T or F: the modified duration of
1. T or F: For holders of bonds, investment horizon is always equal to time to maturity
2. T or F: the modified duration of a zero-coupon bond is equal to its time to maturity
3. T or F: the purpose of duration immunizing is to maximize expected return.
4. T or F: Perpetuity bonds have a duration of infinity
5. T or F: Duration increases with a rise in yield
6. T or F: Prices rise more with a decrease in yield than they fall with an equivalent rise in yield.
7. T or F: If you think there will be an increase in inflation it is better to increase the duration of your bond portfolio.
8. T or F: If interest rates are about to fall, it is better to be in treasury bonds than corporate bonds.
9. T or F: The Efficient Market Hypothesis relies on everybody understanding how to correctly value assets.
10. T or F: If fundamental analysis is valid, then the weak form of the EMH is violated.
11. T or F: If markets are efficient then stock prices should never increase.
12. T or F: If there is no evidence of arbitrage then markets are efficient.
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