27. An 8%, 30-year bond has a yield-to-maturity of 10% and a modified duration of 8.0 in the years. If the market yield drops by 15 basis points, there will be a bond's price. A) 1.15% decrease B) 1.20% increase C) 1.53% increase D) 2.43% decrease 28. You wish to compare the performance of a small growth fund to that of the Nasdaq index. The growth fund has an average return of 14% and a standard deviation of 17%. The Nasdaq index has an average return of 20% and a standard deviation of 23%. If the risk-free rate is 2%, what is the MP measure for this fund (compared to the Nasdaq benchmark)? A) B) C) D) E) -9.132% -1.765% 0 2.015% 3.320% 29. You purchase one IBM July 120 call option contract for a premium of $5 per share. You hold the option until the expiration date when IBM stock sells for $123 per share. You will realizea on the investment A) $200 profit B) $200 loss C) $300 profit D) $300 loss _option will be valuable than a 30. Other things being equal, a[n) option A) American, more, European B) American, less, European C) call, more, put D) call, less, put 31. In theory, the maximum loss that could be incurred by the writer of a naked call option is zero B) equal to the exercise price of the put C) equal to the price of the underlying stock on the option's expiration date D) unlimited