Suppose you are a bond trader. you read in the wall street journal that the yields on some risky bonds have increased by more than 200 basis points since last month. as a trader, you are concerned that yields may increase another 200 bps and want to understand the effect this would have on a bond you own. suppose you own a bond with a dollar duration of 677.75 trading at 70.3057. if the bond’s yield increases by 200 basis points, as you fear it will, by how much will the bond price change in percentage terms?

If you were running a company, what are at least two things you could do to improve its productivity.

Choose the statement that is incorrect. a. search activity occurs only in markets where there is a shortage. b. when a price is regulated and there is a shortage, search activity increases. c. the time spent looking for someone with whom to do business is called search activity. d. the opportunity cost of a good is equal to its price plus the value of the search time spent finding the good.

Stocks a, b, and c are similar in some respects: each has an expected return of 10% and a standard deviation of 25%. stocks a and b have returns that are independent of one another; i.e., their correlation coefficient, r, equals zero. stocks a and c have returns that are negatively correlated with one another; i.e., r is less than 0. portfolio ab is a portfolio with half of its money invested in stock a and half in stock b. portfolio ac is a portfolio with half of its money invested in stock a and half invested in stock c. which of the following statements is correct? a. portfolio ab has a standard deviation that is greater than 25%.b. portfolio ac has an expected return that is less than 10%.c. portfolio ac has a standard deviation that is less than 25%.d. portfolio ab has a standard deviation that is equal to 25%.e. portfolio ac has an expected return that is greater than 25%.