Question: 1. What is the standard deviation given the following information? Probability Possible Returns 35.0% 9.0% 20.0% 15.0% 45.0% 18.0% 29.0% 46.8% none of the answers

1. What is the standard deviation given the following information?

Probability Possible Returns
35.0% 9.0%
20.0% 15.0%
45.0% 18.0%

29.0%

46.8%

none of the answers is correct

4.0%

10.7%

2. Which of the following statement is correct?

The most important investors in corporate bonds are individual investors.

All the answers are correct.

Bonds that sell at prices above par are called premium bonds.

Whenever a bond's coupon rate is greater than the market rate of interest on similar bonds (the bond's yield), the bond will sell at par value, and we call such bonds par-value bonds.

As interest rates fall, the prices of bonds decline.

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