q28

q29

q32

Une-, two-, and three-year maturity, default-free, zero-coupon bonds have yields to maturity of 5%, 6%, and 7%, respectively. What is the implied 1-year forward rate 1 year from today? 11.3% 6.01% 7.01% C 5.01% On day 1, the stock price of Ford was $15 and the automotive stock index was 135. On day 2, the stock price of Ford was $12 and the automotive stock index was 139. Consider the ratio of Ford to the automotive stock index at day 1 and day 2. Ford is the automotive industry, and technical analysts who follow relative strength would advise the stock underperforming buying outperforming; buying outperforming: selling underperforming selling Question 32 What is the VaR of a $100 million portfolio with normally distributed returns at the 5% VaR? Assume the expected return is 10and the standard deviation is 12% -13.52 29.74% 10%