4. We are living in interesting times. Over the past 2 weeks, the S&P 500 ung times. Over the past 2 weeks, the S&P 500 Index has dropped over 10%. At the same time, the short-end of the U.S. Treasury yield curve is approaching zero and to asury yield curve is approaching zero and long-dated yields are at all-time lows. Please evaluate the dynamics of this situation. If the risk-free rate is falling, why are prices increasing? How would you describe the flow of funds and the direction of causantys say about equity beta (B) in the current environment? What predictions can you make based upon the current U.S. Treasury yield curve? 5. You are trying to determine the equity beta () of a privately held company, Summa Corporation, that is not required to publish its financial information. The average asset beta from a group of comparable companies is 1.28. If Summa Corp has a debt/equity ratio of 30% and the tax rate is 35% what is its equity beta (B)? Why do we use asset betas for the comparable companies rather than equity betas? What is the appropriate method to determine comparable companies? What are the risks involved