3. If the Fed raises interest rates because the economy is strong and the increase is then reflected across all maturities the yield curve, holding everything else constant, one would expect the prices of investment grade bonds to _______ (rise or fall).
4. If a companyâ€™s reported earnings for the most recent quarter beats the prior quarterâ€™s earnings but is below the consensus estimate of current earnings by industry and stock analysts, holding everything else constant, one would expect the companyâ€™s stock price to ___________ (increase, decrease or stay the same).
5. One would expect small cap growth stocks to have __________ (higher or lower) expected returns have _____________ (higher or lower) risk (volatility) than large cap value stocks.