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20 of 30 Unsure 1:56:55 You have observed the following information about the two stocks you hold in your portfolio: Xxs Yyk Expected Return 15%
20 of 30 Unsure 1:56:55 You have observed the following information about the two stocks you hold in your portfolio: Xxs Yyk Expected Return 15% 9% Standard Deviation 8% 5% Investment Value $30,000 $70,000 The correlation between Xxs and Yyk is -0.40 (negative .40). The standard deviation of your portfolio is closest to: O a. 4.24% O b. 4.97% . 3.83% O d. 5.13% O e. 3.36% 1.5 Marks Questions attempted:0/30 21 of 30 Unsure 1.5 Marks Which of the following statement(s) is/are true? O a. All statements are NOT true O b. The yield to maturity will be greater than the coupon rate when a bond is selling at a premium OC. All statements are true O d. O e. A high coupon bond is less interest rate sensitive than a low coupon bond The coupon rate will be more than the yield to maturity when a bond sells at a discount
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