Suppose a world has two risky assets: HotPot and IceCream. The following table shows the holding period returns in each scenario. Suppose the T-bill rate is 5%.   Scenario Probability Return (HotPot) Return (IceCream) Rainy 0.02 10% -5% Snowy 0.03 15% -15% Windy 0.9 10% 8% Sunny 0.05 -10% 25% Using the information as in QUESTION 9. Which answer is the closest value to the correlation between HotPot and IceCream?   A. -0.6   B. -0.5   C. -0.7   D. -0.8

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Treasury Market

On-the-run securities are the most recently issued securities in the market depth and are therefore traded at some premium. The off-the-run securities are the ones issued just before the most recent ones. The on-the-run securities have a lower yield to the investor than the off-the-run securities.