10. Which of the following must total to 100 percent? I. rates of return for the various economic states II. portfolio weights . probabilities of occurrence for the various economic states IV. betas of the individual securities held within a portfolio A). I and III only B). II and IV only C). II and III only D). II, III, and IV only E). I, II, III, and I 11. Which of following statements is correct, everything else equal? A) B) C) D) A callable bond will have the higher coupon than a non-callable bond. A secured bond will have the higher coupon than a debenture. A senior bond will have the higher coupon than a subordinated debenture. A bond with a sinking fund will have the higher coupon than a bond without a sinking fund. None of them is correct. E) One year ago, you purchased 500 shares of stock for $12 a share. The stock pays S0.22 a share in dividends each 12. year. Today, you sold your shares for $28.30 a share. What are your total dollar return and percentage return on this investment? A. $6,222. 112.34% B. $7,432; 118.67% C. $8,150; D. $7,775 E. $8,260; 128.32% 145.68% 137.67% 13. Asset A has an expected return of 12% and a beta of 1.05. The risk-free rate is 4%. What is the market risk premium? A) 7.6% B) 8.2% C) D) 9.6% 10.2%