When discussing bonds, convexity relates to the ________.

A. shape of the yield curve with respect to maturity

B. slope of the yield curve with respect to liquidity premiums

C. size of the bid-ask spread

D. shape of the bond price curve with respect to interest rates

Among the following measures, which one could be derived by either the CAPM or the Fama and French model?

A. Jensen's alpha

B. M2

C. the P/E ratio

D. the Sharpe ratio

Random price movements indicate:

A. irrational markets

B. that markets are functioning efficiently

C. that prices cannot equal fundamental values

D. that technical analysis to uncover trends can be quite useful

Contrarian investors consider a high put/call ratio a: A. bearish signal

B. bullish signal

C. trend confirmation signal

D. signal to enter the options market