1.a

1.b

1.c

1.d

Stock X has a Beta of 0.5 and Stock Y has a beta of 1.8. What is the beta of a $5,000 portfolio that has $4,000 invested in stock X and the remainder invested in stock Y? 0.55 0.62 0.71 0.76 A bond is currently selling for $946.46, a face value of $1,000, 5.5% coupon rate and matures in 9 years. It can be called in three years at $1,040. Calculate the bond's yield to call. 4.74% 5.50% 06.30% 8.83% You are contemplating investing in two stocks A and B that have an expected return of 15% and 10% respectively. If your target expected return from your portfolio is 10%, what should be the weight of your investment in A? 0 0.5 0.6 1 If the correlation between two stocks is +1, then a portfolio combining these two stocks will have a standard deviation that is: less than the weighted average of the two individual standard deviations. greater than the weighted average of the two individual standard deviations. equal to the weighted average of the two individual standard deviations. less than or equal to average standard deviations of the two weighted standard deviations, depending on other information