ANSWER ALL. ANSWERS ONLY.

1. purchasing a portfolio of assets is known as

Question options:

	asset transformation
	diversification
	economies of scale
	adverse selection

2. You buy a newly issued 10 year coupon bond with a face value of $1,000 that makes annual coupon payments of $50 for $1,000. What is your rate of return if you sell the bond one year later for $1,070?

Question options:

	5%
	7%
	2%
	12%