Answer Happy

Question 3 Which of the following statements are false: A) A
nominal bonds Macaulay Duration is lower than its maturity B) A
zero-coupon bonds Macaulay Duration lower than its maturity C)
Convexity represents the changes in bond price relative to changes
in duration D) A bond with a coupon rate identical to its yield to
maturity will have a price equal to par value E) Bond prices are
driven by supply and demand Question 4 Which of the following
statements are false: A) The tangency portfolio is the point on the
efficient frontier that is tangent to the risk-free rate B) None of
the above are false C) You cannot determine the tangency portfolio
if your portfolio only has a single asset D) You cannot calculate
the tangency portfolio without a risk-free rate E) The tangency
portfolio is optimal as it provides the highest sharpe ratio