Question: Please answer all questions in one paragraph or more. Thank you Discuss whether the following statement is true or false: Only weak companies issue debentures.?

Please answer all questions in one paragraph or more. Thank you

  1. Discuss whether the following statement is true or false: Only weak companies issue debentures.?
  2. Would the yield spread on a corporate bond over a Treasury bond with the same maturity tend to become wider or narrower if the economy appeared to be heading into a recession? Would the change in the spread for a given company be affected by the firms credit strength?
  3. A stock had a 12 percent return last year, a year when the overall stock market declined. Does this mean that the stock has a negative beta and thus very little risk if held in a portfolio?
  4. Is it possible to construct a portfolio of real-world stocks that has an expected return equal to the risk-free rate?

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