Bond market indexes can be difficult to construct because

In order for you to be indifferent between the after tax returns on a corporate bond paying 8.5% and a tax-exempt municipal bond paying 6.12%, what would your tax bracket need to be?

The price quotations of Treasury bonds in the Wall Street Journal show an ask price of 104:08 and a bid price of 104:04. As a buyer of the bond what is the dollar price you expect to pay?

You purchased a futures contract on corn at a futures price of 350 and at the time of expiration the price was 352. What was your profit or loss?

You sold short 200 shares of common stock at \$60 per share. The initial margin is 60%. Your initial investment was

Which of the following functions do investment companies perform for their investors?

You purchased shares of a mutual fund at a price of \$20 per share at the beginning of the year and paid a front-end load of 5.75%. If the securities in which the fund invested increased in value by 11% during the year, and the fund's expense ratio was 1.25%, your return if you sold the fund at the end of the year would be______%.

If a portfolio had a return of 12%, the risk free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be____.

1. U = E(r) − (A/2)s2, where A = 4.0.Based on the utility function above, which investment would you select?

The Capital Market Line:

I) is a special case of the Capital Allocation Line;

II) represents the opportunity set of a passive investment strategy;

III) has the one-month T-Bill rate as its intercept;

IV) uses a broad index of common stocks as its risky portfolio.

Your client, Bo Regard, holds a complete portfolio that consists of a portfolio of risky assets (P) and T-Bills. The information below refers to these assets.

E(Rp) 12.00 %

Standard Deviation of P 7.20 % T-Bill rate 3.60 %

Proportion of Complete Portfolio in P 80 % Proportion of Complete Portfolio in T-Bills 20 %

Composition of P:

Stock A 40.00 % Stock B 25.00 % Stock C 35.00 % Total 100.00 %

What is the standard deviation of Bo's complete portfolio?