9) Intere 05 9) Rmarket D) 15.44; .97 The characteristic line for this stock is Rstock C) 4.05; 1.32 B) .26; 1.36 o) 10) An official description of a particular mutua ion of a particular mutual fund's planned investment policy can be found in the fund's A) 12b-1 forms B) investment statement Q) indenture 11) You short-sell 200 shares of Tuckerton Trading Co., now se ling for $50 per share. What 11) is your maximum possible loss? A) $10,000 D) unlimited B) $50 Q $150 12) Security A has an expected rate of return of 12% and a beta of 1.1. The mark et expected 12) rate ofreturn is 896, and the risk-free rate is 5%. The alpha of the stock is A) 5.5% B)-1.7% C) 8.7% D) 3.7% 13) Arbitrage is based on the idea that 13) A) assets with identical risks must have the same expected rate of return B) markets are perfectly efficient the expected returns from equally risky assets are different D) securities with similar risk should sell at different prices 14) The the ratio of municipal bond yields to corporate bond yields, the the cutoff tax bracket at which more individuals will prefer to hold municipal debt. A) higher; lower B) lower; lower C higher; higher D) The answer cannot be determined without more information