Investments, 11th Edition (exclude Access Card)
Investments, 11th Edition (exclude Access Card)
11th Edition
ISBN: 9781260201543
Author: Zvi Bodie Professor; Alex Kane; Alan J. Marcus Professor
Publisher: McGraw-Hill Education
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Chapter 24, Problem 3CP

A

Summary Introduction

To think critically about: Bond portfolio at the starting of the year then calculates the return. Compare the return with the return actully obtained.

Introduction: Comparison of return from resulting value with actual return will not differ. Checking the bond value throughout the year will gives same returns.

B

Summary Introduction

To think critically about: Average weighted returns of the portfolio by using long bond market index and T-bills. Return should be compared with the annual return.

Introduction: Actual weights are used to calculate the average returns of a portfolio. Market index and T-bills tools are used in this approach.

C

Summary Introduction

To think critically about: For every quarter of the year, the net bond purchase activity will be examined.

Introduction: For every quarter of the year, bond purchasing activity is examined until its value becomes negative. The sign of the purchase will be taken by the manager.

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