QUESTION 23

You believe crude oil price are going to increase and long 1 contract of oil today which is January (the oil contract size is 1,000 barrels per contract). The current oil future price for delivery in March is $59.48 per barrel. If crude oil is selling for $62.48 at the contract maturity date, whats your profits/losses?

	A.	$4,000
	B.	$5,000
	C.	$3,000
	D.	$2,000

1.82 points

QUESTION 24

1. A portfolio with a rate of return 20%, standard deviation 20% , residual standard deviation 2% and alpha 2%, whats the portfolios information ratio?

	A.	0.30
	B.	0.01
	C.	0.80
	D.	1.00

1.82 points

QUESTION 25

1. Suppose the value of the S&P 500 Stock Index is currently $3,000. If the one-year T-bill rate is 3.4% and the expected dividend yield on the S&P 500 is 2.8%, what should the one-year maturity futures price be?

	A.	$6,510.00
	B.	$3,018.00
	C.	$1,012.00
	D.	$5,000.00

1.82 points

QUESTION 26

1. Using local currency returns, the S&P 500 has the highest correlation with

	A.	Euronext.
	B.	FTSE.
	C.	Toronto.
	D.	Nikkei.