An 8% coupon U. S. Treasury note pays interest on May 30 and November 30 and is traded for settlement on August 15. The accrued interest on the \$100,000 face value of this note is______.

A. unsystematic risk.

B. interest rate risk.

C. market risk.

D. reinvestment risk.

E. unique risk.

A. standard deviation of returns.

B. unique risk.

C. specific risk.

D. reinvestment risk.

E. beta

A. There is a linear relationship between the securities' coefficient of correlation and the portfolio variance.

B. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance and there is a linear relationship between the securities' coefficient of correlation and the portfolio variance.

C. The degree to which the portfolio variance is reduced depends on the degree of correlation between securities.

D. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance.

E. The higher the coefficient of correlation between securities, the greater the reduction in the portfolio variance and the degree to which the portfolio variance is reduced depends on the degree of correlation between securities.

A. the portion of the investment opportunity set that lies above the global minimum variance portfolio.

B. both the portion of the investment opportunity set that lies above the global minimum variance portfolio and the portion of the investment opportunity set that represents the highest standard deviations.

C. the portion of the investment opportunity set which includes the portfolios with the lowest standard deviation.

D. the set of portfolios that have zero standard deviation.

E. the portion of the investment opportunity set that represents the highest standard deviations

A. the assets have a correlation coefficient less than one.

B. the assets have a correlation coefficient equal to one.

C. the assets have a correlation coefficient equal to zero.

D. the assets have a correlation coefficient greater than zero.

E. the assets have a correlation coefficient less than zero

A. None of these is correct.

B. The point of tangency with the opportunity set and the capital allocation line.

C. The point of tangency with the indifference curve and the capital allocation line.

D. The point of highest reward to variability ratio in the opportunity set.

E. The point of the highest reward to variability ratio in the indifference curve

A. the line that connects the risk-free rate and the global minimum-variance portfolio of the risky securities.

B. the horizontal line drawn from the risk-free rate.

C. the line tangent to the efficient frontier of risky securities drawn from the risk-free rate.

D. the line that connects the risk-free rate and the portfolio of the risky securities that has the highest expected return on the efficient frontier.

E. the line that connects the risk-free rate and the global maximum-variance portfolio of the risky securities.