Finance – portfolio management | Financial markets homework help
Q.1 (a).What is the relationship between Yield Curve and Fiscal and Monetary Policies ?
Q.1 (b). Describe the relationship between Inflation and Business Cycle.
Q.2.Explain the different sources of excess return in international bond portfolios
Q.3.Given the following information, calculate the short-term interest rate target.
Neutral rate 4%
Inflation target 3%
Expected inflation 7%
GDP long-term trend 2%
Expected GDP growth 0%
Q.4.Given the following information, calculate the Sharpe Ratio. (2 Marks)
Return of Portfolio 30
Risk-free Return 10
Standard –deviation of portfolio’s excess return 15