Which of the Following Statements Are Correct Regarding Series EE

question 46

Multiple Choice

Which of the following statements are correct regarding Series EE savings bonds?
I. Interest is accrued monthly and compounded semiannually.
II. The minimum holding period is 3 months.
III. A penalty of 3-months interest is applied to all bonds redeemed prior to maturity.
IV. Bonds held to maturity are guaranteed to double in value regardless of the interest rate.

• A) I and III only
• B) I and IV only
• C) II and III only
• D) II and IV only
• E) II, III, and IV only

Analyze the impact of correlation between assets on portfolio diversification.

Understand the risk-return trade-off for risk-averse investors.

Calculate the required rate of return for investments using the Capital Asset Pricing Model (CAPM).

Integrate the concepts of beta, risk-return relationship, and security market line (SML) in making investment decisions.

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