Consider two bonds, a and b. both bonds presently are selling at their par value of $1,000. each pays interest of $120 annually. bond a will mature in 5 years, while bond b will mature in 6 years. if the yields to maturity on the two bonds change from 12% to 14%, a. both bonds will increase in value but bond a will increase more than bond bb. both bonds will increase in value but bond b will increase more than bond ac. both bonds will decrease in value but bond a will decrease more than bond bd. both bonds will decrease in value but bond b will decrease more than bond a

The risk-free rate is 7% and the expected rate of return on the market portfolio is 11%. a. calculate the required rate of return on a security with a beta of 1.92. (do not round intermediate calculations. enter your answer as a percent rounded to 2 decimal places.) b. if the security is expected to return 15%, is it overpriced or underpriced?

The total value of your portfolio is $10,000: $3,000 of it is invested in stock a and the remainder invested in stock b. stock a has a beta of 0.8; stock b has a beta of 1.2. the risk premium on the market portfolio is 8%; the risk-free rate is 2%. additional information on stocks a and b is provided below. return in each state state probability of state stock a stock b excellent 15% 15% 5% normal 50% 9% 7% poor 35% -15% 10% what are each stock’s expected return and the standard deviation? what are the expected return and the standard deviation of your portfolio? what is the beta of your portfolio? using capm, what is the expected return on the portfolio? given your answer above, would you buy, sell, or hold the portfolio?

Your debit card is stolen, and you report it to your bank within two business days. how much money can you lose at most? a. $500 b. $25 c. $50 d. $150