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Fiance

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Question 1
1 out of 1 points | | | Other things equal, an increase in the government budget deficit

@An increase in the government budget deficit, other things equal, causes the government to increase its borrowing, which increases the demand for funds and drives interest rates upAnswer | | | | | Selected Answer: | drives the interest rate up. | Correct Answer: | drives the interest rate up. | | | | | * Question 2
1 out of 1 points | | | If a portfolio had a return of 10%, the risk free asset return was 4%, and the standard deviation of the portfolio's excess returns was 25%, the risk premium would be _____.Answer | | | | | Selected Answer: | 6% | Correct Answer: | 6% | | | | | * Question 3
1 out of 1 points | | | Over the past year you earned a nominal rate of interest of 14 percent on your money. The inflation rate was 2 percent over the same period. The exact actual growth rate of your purchasing power wasAnswer | | | | | Selected Answer: | 11.76%. | Correct Answer: | 11.76%. | | | | | * Question 4
1 out of 1 points | | | The holding-period return (HPR) on a share of stock is equal toAnswer | | | | | Selected Answer: | the capital gain yield during the period, plus the dividend yield. | Correct Answer: | the capital gain yield during the period, plus the dividend yield. | | | | | * Question 5
1 out of 1 points | | | An investment provides a 1.25% return quarterly, its effective annual rate isAnswer | | | | | Selected Answer: | 5.09%. | Correct Answer: | 5.09%. | | | | | * Question 6
1 out of 1 points | | | What has been the relationship between T-Bill rates and inflation rates since the 1980s?Answer | | | | | Selected Answer: | The T-Bill rate has been higher than the inflation

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