1. Using the,Handy Dandy duration approach, assume a bond has a duration of 5 years, if interest rates are expected to rise 2%, how much will the bond price change?

A. Up 10%

B. Down 10%

C. Up 2.5%

D. Down 2.5

2. Market returns have been awful. The excess return on a stock is a negative 10%, the excess return on the market is a negative 5%. What is beta?

A. 0.5

B. 2.0

C. -2.0

D. Cannot be determined