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Risk and return of portfolios of two risky assets
Weight in Debt wD ->
Expected Return Debt E[rD]->
Portfolio Expected Return->
50% <- wE Weight in Equity
13% <- E[rE] Expected Return Equity
Construct a histogram of the distribution of 25 year holding period returns (HPR) in stocks using the
provided simulation data.
Chapter 15 The Term Structure of Interest Rates
The Term Structure of Interest Rates
The yield curve is a graph that displays the relationship between yield and maturity.
Information on expected future short term rates can be implied from the yield curv
East Asian 352
How did the narrators in Ten Years of Madness deal with their experience in the Cultural
Revolution? How did they make sense of what happened? If you chose to write about this topic,
do not try to discuss the whole book, p
Chapter 11 checkpoints
1a. Suppose you observed that high-level managers make superior returns on investments
in their companys stock. Would this be a violation of weak-form market efficiency?
Would it be a violation of strong-form market efficiency?
The Efficient Market Hypothesis
Multiple Choice Questions
1. If you believe in the _ form of the EMH, you believe that stock prices reflect all
relevant information including historical stock prices and current public information about the
First Interest Date
Annual Coupon Rate
Excel: ACCINT formula
Days in the coupon period
Days until the next coupon
Days since last coupon
Percent of coupon owed