Question: Please help, please show work! Thank you! The solutions are given, just need help understanding and computing the work 15. C 16. A 15. The
Please help, please show work! Thank you! The solutions are given, just need help understanding and computing the work
15. C 16. A

15. The stock market is in equilibrium. Required return on the Bear stock is 20% which has a beta of 2. Required return on the Lion stock is 27% which has a beta of 3. Using the reward-to-risk ratio relationship, what must the risk-free rate be? 4% 5% deodo 6% 7% 8% 16. de ovo You paid $960 for an 10% coupon bond five years ago. This bond has a face value of $1,000 and pays coupon at the end of every year. You sold the bond for $920 yesterday after receiving the fifth coupon payment. What is your percentage return per year on this investment? 9.73% 10.00% 11.08% 11.25% 47.92%
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