Answer Happy

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 3 USE THE FOLLOWING INFORMATION FOR QUESTIONS 5 & 6 You have 4 friends that each owe you money, shown in the table below. Assume the yield to maturity for all four debts is 17.28%. Friends Kane Dillon Rihana Carter Jordynne Wilson Saleem al-Adel Amount_Owed Pebt. Due R5910 3 years R9370 1 years R7150 4 years years Question 5 Calculate the present value of your combined debt from all four friends. A) 16395.58 B) 20623.37 C) 27532.2 D) 19179.73 E) 21035.84 Question 6 Calculate the Macaulay Duration of debt portfolio. A) 2.1568 years B) 1.8117 years C) 1.4235 years D) 2.5882 years E) 2.4911 years