2. TIPS are risky securities because if inflation declines the face value of the securty declines. true of false?
3. If the yearly inflation rate between 2013 and 2020 is 2% then an investment in the 1.250% coupon maturity 7/15/2020 TIPS will offer a higher real return than the 2.63% US Treasury Note maturing 8/15/2020.
Base your answer on the yields that existed on 1/23/2013. true or false?
4. If you own shares in SPY valued at $10,000 and you now add $10,000 worth of common stock in PH and $10,000 worth of common stock in TXT to your original portfolio the risk of your portfolio will increase. true or false?
5. I have the following portfolio: $1 million of SPY. If I sell 10% of my SPY holdings and use the proceeds to buy shares in UNG the risk of my portfolio will decline. Base your answers on data supplied by Yahoo Finance. true or false?
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