1.Explain the difference between idiosyncratic or firm-specific risk, and market or systematic risk.

2. Assume the CAPM holds, and you are given the following values:

Expected return on Malware stock = 12%

Risk-free rate = 3%

Beta of Malware stock = 2

What is the expected return on the market? Please give formula, show work and your calculation.

3.Explain the difference between a general obligation bond and a revenue bond.

4.What is the face value of a zero coupon bond that has a yield of 8.5%, matures in 6 years, and is currently selling for $404.54? Round your answer to the nearest dollar. Please give formula, show work and yourcalculation.