Michael owns a 20-year bond with a stated interest rate of 6%. If current interest rates decline to 3%, we would expect the price of Michael's bond to

• A. Increase in value/price
• B. Remain the same in value/price
• C. Decrease in value/price

Which of the following would be considered a core holding in a diversified portfolio of US domestic securities?

• A. Small cap growth fund
• B. S&P 500 index fund
• C. Emerging markets fund
• D. Diversified REIT fund

Will is reviewing his investments and has noted that many investors have sold growth stocks and, are instead, focusing on value stocks. As such, Will decides to disregard his asset allocation and exclusively invest in value stocks. Based on Will's behavior, this type of investor bias is called

• A. Overconfidence
• B. Herding
• C. Myopic Loss Aversion
• D. Hindsight