Question
12. If you are expecting interest rates to rise , which of the following combinations would be the best choice for your bond portfolio? Group
12. If you are expecting interest rates to rise, which of the following combinations would be the best choice for your bond portfolio?
Group of answer choices
a. Long maturity, low coupon
b. Long maturity, high coupon
c. Short maturity, low coupon
d. Short maturity, high coupon
13. Using the zero growth formula for valuing a share of common stock, if the discount rate (required rate of return) increases, and all the other input variables remain the same, the price of the stock will ______________.
Group of answer choices
a. increase
b. decrease
c. remain unchanged
d. cannot be determined
14. Which type of market efficiency is an "event study" designed to test?
Group of answer choices
a. Weak form efficiency.
b. Semi-strong form efficiency.
c. Strong form efficiency.
d. All of the above
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