Sources of excess return in international bond portfolios

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Reference no: EM133183838

1 (a. What is the relationship between Yield Curve and Fiscal and Monetary Policies ?

1 (b. Describe the relationship between Inflation and Business Cycle.

2. Explain the different sources of excess return in international bond portfolios

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%

4. Given the following information, calculate the Sharpe Ratio.

Return of Portfolio 30

Risk-free Return 10

Standard -deviation of portfolio's excess return 15.

Reference no: EM133183838

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