NO.PZ202212260100001802
问题如下：
Calculate the expected total risk premium of the three securities and determine the investor’s probable course of action.
选项：
解释：
The average spread (over 1-year government bond) at issue is [0 + 1 + (1 + 0.75 + 0.55)] = 3.3%/3 = 1.1%.
As the 1.1% is less than 1.5%, the investor will not make the investment.
中文解析：
发行的1年期政府债券平均息差为[0 + 1 +(1 + 0.75 + 0.55)]= 3.3%/3 = 1.1%。
由于1.1%小于1.5%，投资者不会进行投资。
According to the question, the expected spread/premium of the equally weighted investment is at least 1.5 percent (150bp) over the 1-year government bond. Thus, the expected total return should be 5.3%(3.8%+1.5%=5.3%) , which is higher than 4.9%. So the investor will invest in none of them at this time.
