Respond with complete sentences and paragraphs. Please be specific in your responses. Do not plagiarize from the textbook or Internet. Make sure your responses reflect your own individual thinking on the topic.

1. What is the fundamental concept that underpins the value of all assets? (Check you class notes)

2. Describe how annuities work.

3. Describe how bonds are valued.

4. What is the mean, standard deviation, and variance? Why are these statistical measured used in quantitative analysis?

5. What is the importance of covariance and correlation when creating a quantitative solution for a portfolio?

6. What creates Price Volatility for a Bond; and describe the impact of price volatility.

7. List the concepts we discussed that create risk for an asset.

8. When Calculating duration which variables have little impact on the Duration value?