My pension plan will pay me $10,000 once a year for a 10-year period. The first payment come in at the end of 6th year from now. The pension fund wants to immunize its position. If the pension plan uses 5-year zero-coupon bond and 20-year zero coupon bond to construct the immunization position, what is the weight on the 5-year zero-coupon bond? Suppose the interest rate is 10%.

You decide to invest in a portfolio consisting of 25 percent stock a, 25 percent stock b, and the remainder in stock c. based on the following information, what is the expected return of your portfolio? state of economy probability of state return if state occurs of economy stock a stock b stock c recession .16 - 16.4 % - 2.7 % - 21.6 % normal .55 12.6 % 7.3 % 15.9 % boom .29 26.2 % 14.6 % 30.5 %