Question $1(2$ points$)$ One year ago, you purchased $10$ shares of a stock for $$50$ per share.$$ Today, the price per share of that stock is $$57.$ There were no dividends paid during the past year.$$ Calculate your annual rate of return on the stock investment. Question $1$ options: $-14\mathrm{.}0\%7\mathrm{.}0\%12\mathrm{.}3\%14\mathrm{.}0\%$ None of the above. Question $2(2$ points$)$ Suppose that you purchased a $$1000$ par value bond for $$1040$ with one year maturity remaining.$$ If the bond has an annual coupon rate of $9\%,$ what is your rate of return on that investment once the bond matures? Question $2$ options: $-3\mathrm{.}8\%4\mathrm{.}0\%4\mathrm{.}8\%13\mathrm{.}0\%$ None of the above. Question $3(2$ points$)$ You discover that the beta coefficient for a stock that you are researching is $1\mathrm{.}25.$ Your further efforts reveal that the yield$-$to$-$maturity on US T$-$Bills is $2\mathrm{.}5\%$ and that analysts are expecting the overall stock market to have an $8\mathrm{.}5\%$ return for the upcoming period.$$ Based on this information, what is the required return for this security using the Security Market Line from the CAPM? Question $3$ options: $10\mathrm{.}0\%10\mathrm{.}6\%13\mathrm{.}1\%16\mathrm{.}3\%$ None of the above. Question $4(2$ points$)$ Using the beta coefficient from the prior problem, if the return on the market portfolio is expected to decrease by $4\%,$ what can we expect to happen to that stock's required rate of return? Question $4$ options: $-5\mathrm{.}0\%-2\mathrm{.}8\%5\mathrm{.}0\%5\mathrm{.}3\%$ None of the above. Question $5(1$ point$)$ Which of the following is representative of a systematic risk event? Question $5$ options: The Federal Reserve raises interest rates. Toyota gets sued by multiple parties for brake failures in its cars. Consumer confidence drops as a result from a global pandemic. Both a$.$ and c$.$ above involve systematic risk events. Question $6(1$ point$)$ What effect does adding stocks from a variety of different industries have on a portfolio? Question $6$ options: It increases the unsystematic risk of the portfolio. It reduces the overall risk level of the portfolio. It reduces the systematic risk of the portfolio. Both b$.$ and c$.$ above are correct.