Question
24. A quarter of your portfolio is invested into Biodynamics, Inc. which has a beta coefficient of 1.2 and an expected return of 18%. The
24. A quarter of your portfolio is invested into Biodynamics, Inc. which has a beta coefficient of 1.2 and an expected return of 18%. The remainder of the portfolio is invested in treasury bills that return 7%. What is the expected return of your portfolio?
A. 9.75%
B. 30.00%
C. 4.85%
D. 90.75%
E. 7.25%
25. You own a bond with a face value of $100,000 which has a coupon of 5.5% and matures in 12.5 years. You paid $96,950 for the bond. However, the bond is callable in 5 years for a price of 101. What is the yield to Call?
A. 5.85%
B. 3.20%
C. 6.40%
D. 6.22%
E. 4.80%
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