Exhibit 1.5 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Assume that during the past year the consumer price index increased by 1.5 percent and the securities listed below returned the following nominal rates of return. U.S. Government T-bills 2.75% U.S. Long-term bonds 4.75%    

Of the following indices, which includes the most comprehensive list of stocks?

____ is an appropriate objective for investors who want their portfolio to grow in real terms, i.e., exceed the rate of inflation.

The weak form of the efficient market hypothesis states that

Which of the fundamental factors was NOT used in the Fundamental Index created by Research Affiliates, Inc.?

The implication of efficient capital markets and a lack of superior analysts have led to the introduction of

One of the reasons for constructing a policy statement is it

____ refer(s) to the ability to convert assets to cash quickly and at a fair market price and often increase(s) as one approaches the later stages of the investment life cycle.

A properly selected sample for use in constructing a market indicator series will consider the sample’s source, size, and

Exhibit 5.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Stock Rit Rmt ai Beta C 12 10 0 0.8 E 10 8.0 0 1.1 Rit = return for stock i during period t Rmt = return for the aggregate market during period t   Refer to Exhibit 5.1. What is the abnormal rate of return for Stock C during period t using only the aggregate market return (ignore differential systematic risk)?