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1. Recent volatility in equity markets has been attributed mostly to: a. increases in 10-year...

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1. Recent volatility in equity markets has been attributed mostly to: a. increases in 10-year treasury yields as a consequence of inflation fears. b. drops in 10-year treasury yields as a consequence of inflation fears. c. increases in 10-year treasury yields as a consequence of deflation fears. d. drops in 10-year treasury yields as a consequence of deflation fears. e. it's all random. 2. The Federal Reserve (FED) has responded to recent inflation fears with: a. promise to increase interest rates as long as excessive inflation is observed b. promise to decrease interest rates as long as excessive inflation is observed c. a&b d. neither a or b 3. Which kind of stocks are most volatile in the environment of rising inflation fears? a. Income stocks b. Growth stocks c. Value stocks d. Blend stocks e. All stocks react the same

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