Question
29. Bond ABC and Bond XYZ have the same annual coupon rate, but Bond ABC uses annual coupon payments and Bond XYZ uses semi-annual coupon
29. Bond ABC and Bond XYZ have the same annual coupon rate, but Bond ABC uses annual coupon payments and Bond XYZ uses semi-annual coupon payments. Other things being equal, the price of Bond ___________ is higher.
Group of answer choices
ABC
They have the same bond price.
XYZ
33. You are holding stock A and would like to include B, C, or D to form an equal-weighted portfolio, AB, AC, or AD.
A and B are negatively correlated; A and C are positively correlated; and A and D are uncorrelated (i.e., 0 correlation).
Rank the standard deviations of the portfolios, AB, AC, and AD, in an ascending order (the lowest in the front):
[Assume all the stocks have the same standard deviation.]
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