Consider a $100 face value bond with a fixed annual coupon of 3%, a maturity of 5 years and a yield to maturity of 4.2%. Which of the following events would increase the Macaulay's duration of this bond?

Select one alternative:

• Doubling all the remaining bond cash flows
• Halving all the remaining bond cash flows
• An increase in its yield to maturity
• None of these events would have any effect (none of the alternatives are correct)
• A decrease in its yield to maturity

Which of the following is not a factor used in common benchmark models of expected returns?

Select one alternative:

• LMS
• ROE
• RMW
• MKTRF
• UMD