1) Which of the following stocks is most attractive to hold on a stand-alone basis?

Stock	Expected Return	Standard Deviation of Returns	Beta
Marco Industrials	10%	8%	1
Shelby Specialty Pet Supplies	3.5%	2%	0.5
Kelly Cosmetics	6%	4%	0.75
Tony's Plant-Based Meat	18%	14%	1.3

a)	Marco Industrials
b)	Tony's Plant-Based Meat
c)	Shelby Specialty Pet Supplies
d)	Kelly Cosmetics

2) Consider the bonds shown below:

Bond Issuer	Par Value	Coupon Rate	Yield to Maturity	Time to Maturity	Bond Rating
Shelby Specialty Pets	$1,000	4.5%	4.75%	10 years	BBB
Tony's Plant-Based Meat	$1,000	5.2%	5.10%	3 years	B
Kelly Cosmetics	$1,000	3.6%	3.95%	15 years	AA

Given the characteristics shown above, which bonds should trade at a discount?