1.What is the approximate expected coefficient of variation () of returns for a projected one-year project that is 50-50 chances to give +10% return as it is to provide a 5% loss?

A) 0

B) 0.2

C) 0.50

D) 1.00

E) 3.00

1. Corporationsstockcurrentlysellsfor$40pershare.ThecompanywantstoselltheSeriesBofasemi-annualcouponpaymentbondwith8yearsmaturityattheparvalue$1,000today.Eachbondwouldhave75warrantsattachedtoit,eachexcersizeintooneshareofstockatanexercisepriceof$45.Thefirmsstraightbondsyieldtomaturityis7%.Eachwarrantisexpectedtohaveamarketvalueof$2.00giventhatthecurrentstocksellsfor$40.WhatisWarnerbondannualcouponrateifWarnerdecidestoissuetheSeriesBbondwith75warrantsattachedfor$1,000?

2.A stock expects to pay a year-end dividend of $3.00 a share. Due to negative industry growth, the dividend is expected to decrease 4 percent a year forever. The companys beta is 2, risk free rate is 3% and total required rate of return for market portfolio is 9 percent. What is this stock dividend yield in five years from now?

1.You starting a new job and you are saving $500 every month for the next 10 years. You plan to invest in a 6% APR investment opportunity that will compound its 6% APR interest rate daily (30 days in a month). Calculate how much will your savings be in 10 years from now.

Smith bond is currently selling at $1,009.44 with 6 years to its maturity. Currently the interest rate is 6% APR compounded semi-annually. What is the annual coupon rate of the Smithbond if the bond pays semi-annual coupon payments?