1. The ACE Equity Fund has an expected return E[r] of 11.830% and the ZQR Bond Fund has an expected return E[r] of 6.690%. A portfolio comprised of 3% ACE and 97% ZQR would have an expected return of %. (percent, rounded three places after decimal) 2. Anderson uses his computer and internet link to chart the movement of his favorite 46 stocks. He buys and sells according to the analysis he does of the price charts on these stocks. If he can generate consistent abnormal returns in this manner then this is a failure of all of the above- weak form efficiency none of the above semi-strong form efficiency strong form efficiency QUESTION 3 1. A deposit of $100,000 is made to an investment account today. At the end of each of the next four years, $10,000 must be paid out to a beneficiary, and the account liquidated at the end of year four. If the liquidation value is $100,000, the account has earned an annual internal rate of return of %. (percent, rounded three places after the decimal) QUESTION 11 1. According to the Student Code, representing the words, work, or ideas of another as his or her own in any academic endeavor constitutes plagiarism. True False- 0.5 points QUESTION 12 1. William Gates III gives me $8,000,000.00 to invest. At the end of the first year, I report to William Gates III a loss of 27% for the year. However, at the end of the second year, I report a gain of 42% for the year. The actual average annual return on the portfolio was %. (percent, rounded three places after the decimal) 1 points QUESTION 13 1. We expect a return on the market of 11.900% and a risk free rate of 4.100%. Using data over the past five years, we measure the rate of return on Cerigo Olive Oil as 15.369% with a beta of 2.61. Therefore we calculate Jensen's Alpha on Cerigo Olive Oil as % (percent, rounded three places after the decimal)