1- T/F if economic risk is increasing and spreads are widening he should be willing to pay more for his corporate bonds.

2-T/F If the GDP is growing, chances are that credit spreads will contract causing U.S. T-notes to rise 3- T/F If the economy is contracting, corporate bonds will go up from a fall in credit spreads.

4-T/F lf l have a standard deviation of 10 and a return of 8 % , then 95 % of the time I should lose no more than 2 %

5-T/F Essentially, the whole idea of valuing stocks and bonds and deciding whether or not to accept or reject capital investments (machines, a truck fleet, etc.) is to compute the present value of the cash flows