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9. A T-bill quote sheet has 90-day T-bill quotes with a 4,92 bid and a 4.86 ask. If the bill has a $10,000 face value,
9. A T-bill quote sheet has 90-day T-bill quotes with a 4,92 bid and a 4.86 ask. If the bill has a $10,000 face value, an investor could buy this bill for A) $10,000 B) $9,878.50 C) $9,877 D) $9,880,16 10. You put halfof your money in a stock portfolio that has an expected return of 14% and a standard deviation of 24%. You put the restofyour money in a risky bond portfolio that has an expected return of 6% and a standard deviation of 12%. The stock and bond portfolios have a correlation coefficient of.55. The standard deviation of the resulting portfolio will be A) more than 18% but less than 24% B) equal to 18% C) more than 12% but less than 18% D) equal to 12% 11. Consider the Sharpe and Treynor performance measures. When a pension fund is large and well diversified in total and it has many managers, themeasure is better for evaluating individual managers while the measure is better for evaluating the manager of a small fund with only one manager responsible for all investments, which may not be fully diversified A) Sharpe; Sharpe B) Sharpe; Treynor C) Treynor; Sharpe D) Treynor; Treynor 12. Lotsa Lenses paid a dividend of S1.17 last year, and plans a dividend growth rate of 370% indefinitely. Lotsa's stock price is now $14.44. What return can Lotsa Lenses investors expect on their stock? A) 12.10% B) 11.80% C) 4.33% D) 10.11%
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