m 3330 MULTIPLE CHOICE. Choose the one altermative that best completes the statement or answers the question. D) A boed that has no collateral is called B) junk bond A) callable bond 2) Which of the following is not a characteristic of a money market instrument? B) marketability D) low risk A) liquidity maturity greater than 1 year 3) The five-star Morningstar rating implies A) lowest fees compared to peers. o lowest turnover compared to peers. B) superior returns compared to risk. D) superior risk compared to return 4) Suppose you pay $9,400 for a $10,000 par Treasury bill maturing in 6 months. What is4 the effective annual rate of return for this investment? A) 13.17% D) 12.77% 5) What is the standard deviation ofa portfolio of two stocks given the following data: B) 6.38% 14.25% 5) Stock A has a standard deviation of 30%. Stock B has a standard deviation of 18%. The portfolio contains 60% of stock A, and the correlation coefficient between the two stocks A)0% B)18% 9 24% D) 10.8% 6) All major stock markets today are effectively A) continuous auction markets c direct search markets electronic trading systems 6) B) electronic trading systems D) specialist trading systems 7 During the 1986-2013 period, the Sharpe ratio was lowest for which of the following7) asset classes? A) small U.S. stocks B) large U.S. stocks Q equity world portfolio in U.S. dollars Dy long-term U.S. Treasury bonds s) An investor buys a T-bill at a bank discount quote of 4.80 with 150 days to maturity. The s investor's bond equivalent yield on this investment is A) 5.47% B) 4.8% 9 4.97% D) 5.74%