15.

Answer the question based on the following regression charts. The first chart shows the results of a regression of Tesla (TSLA) stock returns on the S&P 500 index returns. The second chart is the same for Microsoft (MSFT) returns. The respective regression equation and R-squared are in the upper right corner of each chart.

Given the regression results, which stock has greater market risk?

Group of answer choices

Microsoft (MSFT)

They both have equal amounts of market risk.

Market risk? Whats market risk?

Tesla (TSLA)

10.

The following chart contains the Efficient Frontier from the Capital Asset Pricing Model. Expected return is measured on the vertical axis and risk is measured on the horizontal axis. Four portfolios (1 through 4) are marked on the chart.

Which of the four portfolios represents a risk-free choice?

Group of answer choices

4

1

3

2

8.

An 8-year Treasury bond has a 10% coupon, and a 10-year Treasury bond has a 10% coupon. Both bonds have the same yield to maturity. If the yield to maturity of both bonds increases by the same amount, which of the following statements would be CORRECT?

Group of answer choices

The prices of the two bonds would remain constant.

The 8-year bond's price would increase, while the 10-year bond's price would decrease.

The prices of both bonds would increase by the same amount.

Both bonds would decline in price, but the 10-year bond would have the greater percentage decline in price.

The prices of both bonds will decrease by the same amount.

Which of the following events would make it more likely that a company would choose to call its outstanding callable bonds?

Group of answer choices

The company's financial situation deteriorates significantly.

The company's bonds are downgraded.

Long-term Treasury yields rise sharply.

Market interest rates decline sharply.