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Question 17 Not yet saved Marked out of 3.00 Flag question Question 18 Not yet saved Marked out of 3.00 Flag question An inverted yield curve between 2 and 10 year fixed coupon government bonds implies that 2 year bond yields are: Select one: O a. Higher than 10 year bond yields, which may indicate investors' expectations of an economic recession. Equal to 10 year bond yields. O b. O c. Lower than 10 year bond yields, which may indicate investors' expectations of an economic boom. O d. Negative and so are 10 year bond yields. O e. Positive and so are 10 year bond yields. You're a hedge fund manager and you believe that S&P500 revenue, earnings and dividend growth rates will permanently increase, leading to higher stock prices. The market thinks nothing will change. You should: Select one: O a. Short S&P500 stocks. O b. Buy S&P500 stocks. O c. Short S&P500 stocks and long futures on the S&P500. O d. Buy S&P500 stocks and short futures on the S&P500. O e. Buy one particular stock, say Apple (AAPL), and short futures on the S&P500. Question 17 Not yet saved Marked out of 3.00 Flag question Question 18 Not yet saved Marked out of 3.00 Flag question An inverted yield curve between 2 and 10 year fixed coupon government bonds implies that 2 year bond yields are: Select one: O a. Higher than 10 year bond yields, which may indicate investors' expectations of an economic recession. Equal to 10 year bond yields. O b. O c. Lower than 10 year bond yields, which may indicate investors' expectations of an economic boom. O d. Negative and so are 10 year bond yields. O e. Positive and so are 10 year bond yields. You're a hedge fund manager and you believe that S&P500 revenue, earnings and dividend growth rates will permanently increase, leading to higher stock prices. The market thinks nothing will change. You should: Select one: O a. Short S&P500 stocks. O b. Buy S&P500 stocks. O c. Short S&P500 stocks and long futures on the S&P500. O d. Buy S&P500 stocks and short futures on the S&P500. O e. Buy one particular stock, say Apple (AAPL), and short futures on the S&P500.

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