QUESTION 1 "The yield curve of Treasury bonds is typically than the corporate bond yield curve, and the shape of the Treasury yield curve is the shape of the corporate bond yield curve." a. Higher; similar to b. Higher; very different from c. Lower; similar to d. Lower; very different from QUESTION 2 "Given the capital allocation line, an investor's optimal portfolio is the portfolio that" a. maximizes her risk. b. maximizes her expected profit. c. maximizes her expected utility. d. minimizes both her risk and return. QUESTION 3 "Assume an investor with the coefficient of risk aversion A=4. To maximize her expected utility, she would choose the asset with an expected rate of return of and a standard deviation of respectively." O a. 12%; 30% b. 15%; 5% O c. 21%; 16% O d. 24%; 21%