Q

a) Of the following types of ETFs, an investor who wishes to invest in a diversified portfolio that tracks the Nasdaq 100 should choose

		SPY.
		DIA.
		QQQ.
		VTI.
		IWM.

b)

Suppose that all investors expect that interest rates for the 4 years will be as follows:

Year	Forward Interest Rate
0		4	%	(today)
1		5	%
2		6	%
3		7	%

What is the price of a 3-year zero-coupon bond with a par value of $1,000?

		None of the options are correct.
		$896.83
		$772.18
		$765.55
		$863.92