1. Required Return If the risk-free rate is 10.2 percent and the market risk premium is 4.4 percent, what is the required return for the market?

Multiple Choice

• 4.4%

• 10.2%

• 5.8%

• 14.6%

2. A corporate bond that you own at the beginning of the year is worth $908. During the year, it pays $13.3 in interest payments and ends the year valued at $872.4. What was your holding period return in percent? (Enter your answer in percent, rounded to the nearest 0.01%, with the "%")

3. Which ratio measures the number of dollars of operating cash available to meet each dollar of interest and other fixed charges that the firm owes?

Multiple Choice

• fixed-charge coverage ratio

• operating coverage ratio

• times interest earned

• cash coverage ratio