Q13: You have a loan principal of $100,000. The annual interest rate is 3% and the loan term is 30 years. Using the PMT() formula, calculate the amount of each annual payment.

1. $30,005.21
2. $5,036.20
3. $30,011.45
4. $5,101.93

Q14: Which of the statements about normal distribution is incorrect?

1. The skewness must be 0 and kurtosis must be 3 for a normal distribution
2. The mean, median, and mode are all the same in a normal distribution
3. We can simply use mean and variance to identify different normal distributions
4. The tails of a normal distribution will get smaller and smaller and reaches zero eventually

Q15: An asset's contribution to a portfolio's return is determined by its:

1. Weight
2. Weight and return
3. None of the listed choices
4. Return

Q17: Which statement about portfolio management is correct:?

1. Given the same level of risk, portfolio with higher Sharpe Ratio generates higher return
2. Once constructed, there is no need to rebalance the portfolio
3. We should always invest in the asset with highest return
4. It is a good practice to invest all our money into one type of assets

Q18: You decide to make 8 annual investments of $2,500 each starting a year from now. Your aim is to accumulate $15,000 by the end of 6 years. To achieve this, you will need a rate of return of 20%. Which of the following Excel formula is applicable for this calculation?

1. FV() formula
2. PV() formula
3. NPV() formula
4. RATE() formula

Q19: Which statement is incorrect?

1. The efficient frontier coincides with the top portion of the minimum-variance frontier
2. An investor can expect to get one unit of market risk premium in additional return for every unit of market risk that the investor is willing to accept.
3. Capital allocation line is a function of risk and return of a portfolio given the risk-free rate
4. The global minimum-variance portfolio is the portfolio that has the lowest standard deviation of all portfolios with a given expected return