$1.$ Assume that the risk$-$free rate is $6\%$ and the market risk premium is $5\%.$ Given this information, which of the following

statements is CORRECT?

An index fund with beta $=1\mathrm{.}0$ should have a required return of $11\%.$

If a stock's beta doubles, its required return must also double.

If a stock's beta doubles, its required return must also double.

If a stock has a negative beta, its required return must also be negative.

$2.$ If $D1=$$$1\mathrm{.}50,g($which is constant$)=2\mathrm{.}83\%,$ and $PO=$$$56,$ then what is the stock's expected capital gains yield for the coming

year?

$2\mathrm{.}83\%$

$1\mathrm{.}95\%$

$2\mathrm{.}98\%$

$2\mathrm{.}50\%$

$3.$Adams Enterprises' bonds currently sell for $$900.$ They have a $20-$year maturity, an annual coupon of $$95,$ and a par value of $$1,000.$

What is their yield to maturity?

Group of answer choices

$11\mathrm{.}97\%$

$10\mathrm{.}56\%$

$10\mathrm{.}73\%$

$6\mathrm{.}02\%$