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thatcher corporations bonds will mature in 10 years the bonds have a face value of 1000 and an 8 percent coupon rate
if you buy a callable bond and interest rates decline will the value of your bond rise by as much as it would have
the values of outstanding bonds change whenever the going rate of interest changes in general short-term interest rates
define each of the following termsa bond treasury bond corporate bond municipal bond foreign bondb par value maturity
suppose you are given the following information the beta of company i bi is 11 the risk-free rate rrf is 7 percent and
the beta coefficient of an asset can be expressed as a function of the assets correlation with the market as followsa
you are given the following set of dataconstruct a scatter diagram showing the relationship between returns on stock y
a use a spreadsheet or a calculator with a linear regression function to determine stock xs beta coefficientb determine
security a has an expected rate of return of 6 percent a standard deviation of expected returns of 30 percent a
define the following terms using graphs or equations to illustrate your answers wherever feasiblea portfolio feasible
you have observed the following returns over timeassume that the risk-free rate is 6 percent and the market risk
stocks a and b have the following historical returnsa calculate the average rate of return for each stock during the
stock r has a beta of 15 stock s has a beta of 075 the expected rate of return on an average stock is 13 percent and
you have a 2 million portfolio consisting of a 100000 investment in each of 20 different stocks the portfolio has a
suppose you hold a diversified portfolio consisting of a 7500 investment in each of 20 different common stocks the
suppose rrf 9 rm 14 and bi 13a what is ri the required rate of return on stock ib now suppose rrf 1 increases to 10
suppose rrf 5 rm 10 and ra 12a calculate stock as betab if stock as beta were 20 what would be as new required rate
the market and stock j have the following probability distributionsa calculate the expected rates of return for the
assume that the risk-free rate is 6 percent and the expected return on the market is 13 percent what is the required
assume that the risk-free rate is 5 percent and the market risk premium is 6 percent what is the expected return for
an individual has 35000 invested in a stock which has a beta of 08 and 40000 invested in a stock with a beta of 14 if
a stocks return has the following distributioncalculate the stocks expected return standard deviation and coefficient
is it possible to construct a portfolio of stocks which has an expected return equal to the risk-free
if a companys beta were to double would its expected return
if investors aversion to risk increased would the risk premium on a high-beta stock increase more or less than that on