Five new multiple-choice questions every day, covering both fixed-income topics (yield curve regimes, duration, spreads, historical rates) and general CFA curriculum (equity valuation, derivatives, portfolio theory, ethics, and macroeconomics). Roughly half bond, half general — balanced daily for comprehensive CFA prep.
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1. According to the Fisher equation, if the nominal interest rate is 6% and expected inflation is 2%, the real interest rate is approximately:
2. What likely happens to the 2s10s spread? Scenario: The Fed raises the funds rate by 75bp but long-term inflation expectations remain anchored
3. An investor holds 1,000 shares and buys 10 put contracts (100 shares each) at a strike of $50. This strategy is called a:
4. An investor's portfolio has an expected return of 9% and a standard deviation of 15%. The risk-free rate is 3%. What is the Sharpe ratio?
5. Yields are rising and the curve is steepening. What regime is this?