2 of 5 5. Depository institutions include: a. Banks b. Thrifts c. Finance companies d. All of the above e. a and b only Answer: 6. Which of the following observations concerning hedge funds is NOT true? They are pooled investment vehicles. b. They are subject to less regulatory oversight compared with mutual funds. c. They usually take significant risk. d. They have to disclose their activities to third parties. Answer: 7. What is common to both hedge funds and mutual funds? SEC Registration b. Disclosure norms c. Management fees d. Performance fees e. Investor profiles Answer: Please answer the following questions. 1. (6 points) A bank's beginning balance of Allowance for Loan Losses in 2019 is $1,000 million. Its net loan charge-offs during 2019 is $120 million, and its provision for loan losses in 2019 is $200 million. What is the ending balance of the Allowance for Loan Losses in 2019? 2. (10 points) Calculate the duration of a 3-year corporate bond with a yield of maturity 8%/year, coupon rate 6%/year, and annual interest payment? Use $1000 as face value