The nominal interest rate is 6%. The inflation rate is 3%. The exact real interest rate must be A. 2.91% B. 3.85% C. 1.45% D. 2.12% 29. On 11/11/2014 1,264 of NASDAQ stocks advanced on a volume of 829,528,757 shares, while 1,421 stocks declined on a volume of 754,643,461 shares. The Trin statistic is which is considered A. 0.809, bearish B. 0.809, bullish C. 1.236, bearish D. 1.236, bullish E. none of the above 30. An investor holds a very conservative portfolio invested for retirement but she takes some extra cash she earned from her year-end bonus and buys gold futures. She appears to be engaging in A. Mental accounting B. overconfidence C. representativeness D. Separation bias 31. "According to Prospect Theory, what matters in investors decisions making is not the level of wealth but rather the change in the level of wealth. Hence, for example, a risky prospect in which a loss or a gain of $100 can occur with equal probability, will have the same value to the investor regardless of how rich (or poor the investor is A. True B. False 32. A large hedge fund has determined that XYZ is underpriced, and decides to accumulate, over the next 10 trading days 500,000 shares of XYZ. The average trading volume in XYZ is 300,000 shares. What is NOT likely to happen during the next 2 weeks? (XYZ has a beta of 1.) A. On days when the S&P500 index is down, XYZ will, on average, be down less than usual or go up B. the serial correlation of XYZ daily rates of return significantly decrease. C. The average volume of trade will increase to significantly over 350,000 shares. D. XYZ stock will appear to be temporarily inefficient in the weak form. 33. Using put-call parity, if the price of an At-the-Money Call option maturing in I day is $3.14, what is the price of an of an At-the-Money Put option maturing in 1 week? A. $0.95 B. $2.86 C. $3.14 D.S3.26