Imagine a world where there are only two risky assets, X and Y, and a risk-free asset. X stock has 200 outstanding shares, its price per share is 3 TL, its expected return is 16% and its standard deviation is 30%. Stock Y has 300 units in circulation, with a price of 4 TL per share, an expected return of 10% and a standard deviation of 15%. The correlation between these two stocks is 40%. Suppose the CAPM holds.

What would be the beta of Stock X and Stock B. See Question 4 above. What would be the beta of Stock X and Stock B?

A corporate bond has a maturity of ten years, a face value of $1,000 and an annual coupon rate of 6.75%. Coupon payments are paid every six months. Assume interest rates are currently 5.5% (annual). What is the current price of this bond (report the answer as a positive number)?

Suppose a corporate bond has a maturity of five years, a face value of $1,000, and an annual coupon rate of 4.5% (payable quarterly). Suppose interest rates are currently 8% (annual). What is the current price of this bond (report the answer as a positive number)?

Goldman Corporation bonds have a maturity of 15 years, a 6% annual coupon rate (payable semi-annually) and a face value of $1,000. If interest rates are currently 5%, what is the current yield of the bond (defined as Annual Interest Payment / Bond Price)?

Answer rating: 100% (QA)

To calculate the beta of Stock X and Stock Y we need the following information The riskfree rate rf ... View the full answer