Question 1
Zero coupon bonds pay no coupons at all but are offered at their par values and hence provide capital appreciation rather than interest income.
◦ true
◦ false
Question 2
A highly risk-averse investor is considering adding one additional stock to a three-stock portfolio, to form a four-stock portfolio. The three stocks currently held all have b = 1.0 and a perfect positive correlation with the market. Potential new Stocks A and B both have expected returns of 20%, and both are equally correlated with the market, with r = 0.80. However, Stock A’s standard deviation of returns is 11% versus 15% for Stock B. Which stock should this investor add to their portfolio, or does the choice matter?
◦
either A or B, i.e., the investor should be indifferent as to which of the two
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Stock A
◦
Stock B
◦
neither A nor B, as neither has a return sufficient to compensate for risk
Offshore spawning stock biomass, Grand Bank Atlantic Cod since the early 1980s
Modern commercial fishing is highly efficient
Creating Trans Fatty Acids Hydrogenating, or adding hydrogen
Stock Market Question
Adding different Angular frequency w(t)?
Adding tens SK