Quiz Ch 11 – Investment Return and Characteristics
Essentials of Investments
Bodie, Kane, and Marcus
12th Edition
How does an accelerated return of a higher investment percentage affect the following?
How does an accelerated return of a higher investment percentage affect the following?
Which investment strategy operates under the assumption that market prices of securities are justly determined?
Describe how weights are determined in Macaulay duration calculation. The weight for year t is __________.
How does aligning the duration of a bond with your 6-year investment horizon impact your realized rate of return relative to changes in interest rates?
To maximize capital gain when anticipating falling interest rates, an investor should buy a bond with a __________ coupon and a __________ term to maturity.
Who is credited as the originator of the duration concept?
What is the relationship between perpetuity duration and interest rates?
What is its duration for a perpetuity with a yield to maturity represented as y?
How is portfolio duration determined?
What time frame achieves a balance between price risk and reinvestment rate risk in a bond portfolio?