Using a regression to estimate beta, we run a regression with returns on the stock in question plotted on the Y axis and returns on the market portfolio plotted on the X axis. The intercept of the regression line, which measures relative volatility, is defined as the stocks beta coefficient, or b.

		True.
		FALSE

A 10-year corporate bond has an annual coupon payment of 2.8%. The bond is currently selling at par ($1,000). Which of the following statement is NOT correct?

		The bonds yield to maturity is 2.8%.
		The bonds current yield is 2.8%.
		If the bonds yield to maturity remains constant, the bonds price will remain at par.
		The bonds capital gain yield is 2.8%.

Call Provision gives issuing corporations the right to call the bonds for redemption. Generally it occurs when interest rate increases substantially. The company should pay additional amount above the par value to the called bondholders, which is call premium.

		True.
		False.

Under what forms of Efficient Market Hypothesis, investors cannot profit via inside information?

		Weak-form Efficient Market Hypothesis
		Semi-strong form Efficient Market Hypothesis
		Strong-form Efficient Market Hypothesis
		All of above.