QUESTION 23 Sell Type Suppose the yield curve for U.S. Treasury bonds is currently fiat across all mal manager. Which of the followings is most likely to be the manager's opinion on yield curve? Bond Transaction Credit Spread (bp) U.S. Govt. H Corporate 100 a. The yield spread is likely to become wider and the yield curve is likely to be Ob. The yield spread is likely to become narrower and the yield curve is likely to Oc. The yield spread is likely to become wider and the yield curve is likely to be Od. The yield spread is likely to become narrower and the yield curve is likely to Oe. The yield spread is likely to stay the same and the yield curve is likely to stay Buy QUESTION 24 Based on the following information, Jensen's alpha for the xxx fund is: Fund Beta Standard Deviation (%) Return (%) XOX 2 43 15 Market 1 3.0 12 a. 0 Ob 3.00% OC.-9.00% d.-7.00% e. 13.00% Click Save and Submit to save and submit Chick SATA to see all consens 20 DOG $ % s all maturities at 5.50%. You have observed following paired transaction by your bond portfolio pinion on the future level of corporate bond credit spreads yield spread) and future shape of the und (b) Maturity cyrs.) Coupon Rate 19) Modified Duration 14.599 5.386 15 is likely to become upward sloping Lurve is likely to become upward sloping is likely to become downward sloping urve is likely to become downward sloping - is likely to stay flat. und is Return (%) 15 12 R(%) 2 erstowwe alla DEL DO 28 A % & 6 0 00 5 7 8 7 T Y U