midterm2_practice - Midterm #2: PRACTICE EXAM Name (no...

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Midterm #2: PRACTICE EXAM 1 out of 8 Name (no nicknames, please): ________________________________________ Circle your Section # : XXX XXX XXX (XXX – XXX) (XXX – XXX) (XXX – XXX) 1. You are only allowed to have with you a pen/pencil and a calculator (no books, notes, computers, phones, etc). Extra scratch paper will be provided if you need it. You must have your own calculator (no sharing). 2. Round your interim work and final answers to the nearest three decimal places, and write your final answer in the provided boxes. You must show work where applicable. 3. You have 90 minutes to complete the exam. There are 8 pages and 20 questions. Maximum possible score is 100 out of 100. True/False (4 points each / Total = 36 points) 1. The standard deviation on a portfolio can be greater than that on every asset in the portfolio. True False 2. It is easier to take control over a firm whose board of directors has staggered election terms. True False 3. If Bond A has greater time to maturity than Bond B, then Bond A’s price must be more sensitive to changes in interest rate fluctuations. True False 4. Higher bond duration indicates that the bond’s price is more sensitive to fluctuations in interest rates. True False 5. If you hold a zero-coupon bond to maturity, then your annualized rate of return is guaranteed to equal the original yield to maturity at time of purchase (assuming the issuer does not default). True
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midterm2_practice - Midterm #2: PRACTICE EXAM Name (no...

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