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QUESTION 25 Which of the following statements is TRUE? O 1. A security with a negative beta indicates that its returns move opposite to changes in the overall market O 2. A security with a beta of zero has its returns move in step with the overall market O 3. A security with a beta of 1 would have returns that do not respond to changes in the overall market O 4. A security with a positive beta indicates that its returns are always greater than those of the overall market QUESTION 26 During its most recent fiscal year, Bundy Inc. paid a dividend of $0.11 per share. Analysts have indicated that the historical growth rate in dividends of 3% is expected to continue for the foreseeable future. They have also informed you that Bundy's beta is 1.2, the risk-free rate of return is 4% and the market price of risk is 7%. What is the market price of a share of Bundy Inc.? O 1.$0.914 O 2. $1.205 3.$1.170 4.$1.349