QUESTION 17 You own a fixed-income asset with a duration of six years. If the level of interest rates, which is currently 9%, goes up by 20 basis points, how much do you expect the price of the asset to go up or down (in percentage terms)? O A. +1.10% O B.-1.10% C.-068% O D. +0.46% O E.-1.35% QUESTION 18 Ace Ventura, Inc. has expected earnings of $6 per share for next year. The firm's ROE is 15% and its earnings retention ratio is 40%. If the firm's market capitalization rate (required rate of return) is 10% (constant growth stock), what is the present value of its growth opportunities? O A. $25 O B. $12.5 C.$30 O D. $60 O E. $50 QUESTION 19 ic forecasts? Which of the followings is an investment strategy which entails shifting the portfolio into industry sectors that are forecasted to outperform others based on O A. Sector rotation B. Business cycle shifting OC. None of the answer selections here in this question D. Contraction/expansion analysis O E. Life cycle analysis