Question: Based on the following information, what is the diversifiable proportion of the stock? Stock Stock index Standard deviation 0.4 Correlation bet, stock and index 0.9

Based on the following information, what is the diversifiable proportion of the stock? Stock Stock index Standard deviation 0.4 Correlation bet, stock and index 0.9 05 on Select one: a 36 ob 25 OC..19 O d..42 Based on the following information concerning Bank One's bonds: Par value: $1,000 Years to maturity: 15 years Coupon rate: 8% paid semiannually Beta: 0.1 Risk-free rate: 4% Market risk premium: 5% What is the expected price of the bond in 5 years? You believe that the risk free rate then will remain at 4% but the market risk premium will rise to 10% due to a worsening economic outlook. Select one: O a $1,282.64 O b. $1,263.87 O c. $1,274.01 O d. $1,233.84 e. $1,256.86
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