1- Which of the following is constant over the life of a bond?

	a.	Yield-to-maturity
	b.	None of these answers.
	c.	{Term-to-maturity} and {Coupon}
	d.	Term-to-maturity
	e.	Coupon

3- If you hold the market portfolio, you can eliminate

	a.	systematic risks.
	b.	unsystematic risks.
	c.	beta.
	d.	all risks.

QUESTION 6

6- In an efficient market,

	a.	{the market price of a common stock approximates its value.} and {the YTM on a bond can diverge substantially from its required rate of return for extended periods of time.}
	b.	the market price of a common stock approximates its value.
	c.	All of these answers.
	d.	the YTM on a bond can diverge substantially from its required rate of return for extended periods of time.
	e.	the required rate of return on a common stock is constant over time.

9- Brownson, Incorporated preferred stock pays $5.00 dividends per share each year. If your required rate of return is 16%, what would be the most you would be willing to pay for a share of Brownson's preferred stock?

	a.	$31.25
	b.	$75.00
	c.	$153.50
	d.	$18.75
	e.	$80.00