Question

In: Finance

Question 1 Will the stock market, as represented by the S&P 500 index, enjoy a positive...

Question 1

Will the stock market, as represented by the S&P 500 index, enjoy a positive return?

Question 1 options:

	Yes
	No

Question 2

Will interest rates, as measured by the 10-year Treasury bond yield, increase or decrease?

Question 2 options:

	Increase
	Decrease

Question 3

Please order the following stocks by your expectation of their total return (from highest to lowest).

Question 3 options:

	CSCO (Cisco)
	AAL (American Airlines)
	WMT (Walmert)
	GM (General Motors)
	ZM (Zoom)

Question 4

Euro will appreciate with respect to the US dollar.

Question 4 options:

	True
	False

Question 5

Financial sector ETF (XLF) will move in the same direction as Real Estate ETF (VNQ).

Question 5 options:

	True
	False

Solutions

Expert Solution

1) It depends on the situation. The S&P index 500 is the market portfolio. There might be fluctuation now and then yet it will earn a positive return

2) The interest rates as measured by 10 year treasury bond will have the oppurtunity of increase in the future. It is usually a risk free rate.

3) GM (General Motors)

WMT (Walmart)

AAL (American airlines)

CSCO (Cisco)

ZM (Zoom)

4) True. Euro is costlier in comparison to Dollar

5) False. Both financial sector and real estate sector will not move on the same direction as they are basically different sectors

jeff jeffy answered 2 years ago

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