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1. Use the relevant information below to evaluate Fund J using Treynor's T. ) 1.8. 40% OR-16% 20% OR-10% RFR - 4% 4. Use the relevant information in Problem to evaluate Fund J using Fama's S. (10) 3. Evaluate a portfolio ("actual") using perfor a portfolio (actual") using performance attribution analysis and the information below. (10) Returns Weights Asset Actual Benchmark Actual Stocks 9% 0.70 Bonds 5% 6% 0.50 0.50 Benchmark 0.30 10% 4. If you invest $2000 today and $1000 a year from now and earn 25% the first year and 15% the second year, warna be your money-weighted-rate-of-return? (10) 5. What is the current price of a bond with a $1000 par value. a 7% nominal vield. a 6% vield-to-maturity and a 2-year maturity? Assume annual coupons. (10) 6. Gamble: If the price of the bond in Problem #5 were $1025 a year later, what would be the HPY? (sor-5) 7. Bonus: What is the duration of a bond in Problem #5? (5) 8. What is the yield on a zero-coupon bond with a 9-year maturity. a $1000 par value and a $700 market price? Assume semiannual compounding. (5) 9. Use the information below and the EMM model to calculate the current stock price. (5) k=12% EPS-$3.00 DPS = $2.25 g -6% 10. Use the information above and the DDM model to calculate the current stock price. (5) 11. If a preferred stock had a market price of $60 and a required return of 12%, what would be its dividend? (5) 12. Estimate the change in the price of a bond if its duration is 5 and if rates increase from 6% to 6.25%. Assume annual coupons. (5) 13. What is the approximate yield-to-call on a bond with a S1000 par value, a nominal yield of 5% and a current price of $950 if it is called in 4 years? (5) 14. Use the relevant information in Problem #4 to calculate the TWRR (5) 15. Use the information below to evaluate the stock. (10) B-1.2 P - $30 Dividend - $1 Risk-free return 4% Market return -12% P - $33 16. Imagine buying a bond for $850 with a 6% nominal yield and a $1000 par value and then selling it 3 years later for $900. What was your realized yield? (5) 17. What was the current yield on the bond in the preceding problem at the time you bought it

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