Question: Question 9 1 pts The expected risk premium on the market is 5% and its standard deviation is 25%. If the returns to shares of

 Question 9 1 pts The expected risk premium on the market

Question 9 1 pts The expected risk premium on the market is 5% and its standard deviation is 25%. If the returns to shares of Telstra have a correlation of 0.54 with the market and a standard deviation of 37% what is the expected risk premium of Telstra, if Telstra is fairly priced? Please choose the option that is closest to the correct answer. 0 4.921% 3.251% There is insufficient information to answer this question. 6.481% 4,001% Question 10 1 pts You see the following yield curve for risk-free government zeros: 20.9., and 11-year maturities are yielding 4.7%, 9.3% and 12.1%, respectively. Suppose there are no transaction costs and (unrealistically) you can short sell these bonds at no cost to you (and with no margin requirement). You don't have money to invest today, but you expect to have money in 2 years, and you would like to invest that money at a risk-free rate that you can guarantee today. What answer below is closest to the rate you can fix today and invest risk-free for 9 years starting in 2 years? 14.53 15.28 13.80 09.30 O 19.44

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