FIN 351 CHAPTER 12 QUIZ 26 TO 30

FIN 351  CHAPTER 12 QUIZ 26 TO 30
26. Bond investors tend to place less emphasis on independent analysis of quality than do common stock investors.
27. The anticipated realized yield represents the return over the holding period.
28. Swaps may be utilized for tax-adjustment purposes and are very popular at the end of the year.
29. The expectations hypothesis is that any long-term rate is an average of the expectations of future short-term rate over the applicable time
horizon.
30. If an investor needs to increase the quality of his portfolio during the low-confidence periods of a recession, he can enjoy usually high
returns on lower-grade instruments relative to higher grades.

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