1. Portfolio income included all of the following EXCEPT:
a. Royalties not derived in the ordinary course of the trade or business
b. Dividends from accumulated earnings and profits of an S corporation
c. Guaranteed payments received by a partner
d. Interest
2. What are the implications of Malkiel’s bond price theorems to bond investors? Which two bond variables are of major importance in assessing bond price changes?
3. Explain the concept of immunization. What role, if any, does duration play in this concept?