Question: Consider the information in the table below: Stock Expected Return Beta Standard Deviation Stock A 11% 1.5 18% Stock B 10% 2.5 20% Stock C

Consider the information in the table below: Stock Expected Return Beta Standard Deviation Stock A 11% 1.5 18% Stock B 10% 2.5 20% Stock C 14% 1.4 25% Stock D 12% 1.8 16% Which stock has the lowest total risk? Stock A O Stock D O Stock C Stock B It is impossible to tell based on the information given A ten-year bond has an 10% coupon rate and face value of $1000. What is the percentage change in the price of this bond if the discount rate rises to 12% from the current level of 10%? Assume the bond makes semi- annual coupon payments. Approximately 10% increase O Approximately 2% increase Approximately 2% decrease O Approximately 13% decrease O Approximately 12% decrease

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