Will Rate all answers, thanks!

SECTION I. MULTIPLE CHOICE 19 questions at 4 points each = 76 points Please use the answer sheet to indicate the best answer to each question. 1. You want to make a down payment on a house 8 years from today. The money that you have set aside for this down payment is invested in a bond portfolio, and the duration of this portfolio is 4.5 years. Which statement below is most accurate? A. Your bond portfolio is too long, and as a result you have price risk; B. Your bond portfolio is too long, and as a result you have reinvestment-rate risk; C. Your bond portfolio is too short, and as a result you have price risk; D. Your bond portfolio is too short, and as a result you have reinvestment-rate risk. 2. The most commonly observed shape for the yield curve is: A. B. C. Upward-sloping Downward-sloping increased probability of recession in the relatively short-term Flat 3. Suppose that the risk-free rate is 4%, and that a particular asset has a beta of 0.9 and an expected return of 9%. What is the expected return on the market? A. B. C. D E. 5.00% 5.56% 8.50% 9.56% 11.08%