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questions (1-4) QUESTION 1 What is standard deviation of the expected return on an investment, or portfolio of investments? A measure of investment risk It
questions (1-4)
QUESTION 1 What is standard deviation of the expected return on an investment, or portfolio of investments? A measure of investment risk It represents the non-diversifiable (systematic) risk of the investment. The weight of the investment A measure of overpricedness A measure of underpricedness QUESTION 2 A bond with face value of $1,000 that sells for more than $1,000 in the market is called a: A Par bond 8. Discount bond C Premium bond D. Zero coupon bond E. Floating rate bond provision QUESTION 3 An agreement giving the bond issuer the option to repurchase the bond at a specified price prior to maturity is the Asinking fund B. call seniority D.collateral Etrustno QUESTION 4 What would you pay for a bond that pays an annual coupon of 535, has a face value of $1,000, matures in 7 years, and has a yield to maturity (VTM) of B? A $765 71 8. $875.34 C. $900.18 D. $910.14 E $97638 Step by Step Solution
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