Question
Please help me to answer these questions. 1) All other things equal, which of the following bond price is more sensitive to interest rate changes?
Please help me to answer these questions.
1) All other things equal, which of the following bond price is more sensitive to interest rate changes?
a. a 10 year bond with a 10% coupon
b. a 20 year bond with a 7% coupon
c. a 20 year bond with a 10% coupon
d. a 30 year bond with 7% coupon
2) A long-short investment strategy is used in the case where the target is being tracked vastly differs from a diversified market portfolio. In such a situation, a _____ model is being used.
a. multi-index
b. single-index
c. multi-asset pricing
d. value at risk
3) Which of the following investment strategies is inconsistent with a "contrarian" philosophy
a. buying low, selling high
b. buying when odd-lot buying is lower than normal
c. buying when mutual fund cash positions are low
d. buying when most investment advisory services are bearish
e. selling after a market crash or decline
4) Which of the following statements is (or are) true of the efficient markets hypothesis?
a. It implies perfect forecasting ability.
b. It implies that prices reflect all available information.
c. It results from keen competition among investors.
d. It implies that market is irrational.
e. It implies that prices do not fluctuate.
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