1. One-year Treasury bills currently earn 3.55 percent. You expect that one year from now, 1-year Treasury bill rates will increase to 3.75 percent. The liquidity premium on 2-year securities is 0.04 percent. If the liquidity theory is correct, what should the current rate be on 2-year Treasury securities?
2. Financial stewardship is a recurring Biblical theme. Beyond the parable of the Talents, where does the Bible recognize the duty of agents to act in an owner’s best interest? How does Risk-Return Analysis assist Christian managers/executives to fulfill their vocation as stewards?