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A bond pays $60 per year in interest and has a $1,000 par value. The market rate of interest is 8%. What is the coupon
- A bond pays $60 per year in interest and has a $1,000 par value. The market rate of interest is 8%. What is the coupon rate for this bond?
- 8%
- 2%
- 6%
- 14%
- Consider a portfolio that is comprised of four investments; the betas and the amounts invested in each company are presented in the table below:
- 8%
- 2%
- 6%
- 14%
| Company | Amount Invested | Beta |
| JNJ | $35,240 | 1.05 |
| CAT | $53,493 | 1.10 |
| GE | $67,450 | 0.74 |
| IBM | $97,250 | 0.98 |
What is beta for the portfolio?
- 0.89
- 0.95
- 1.01
- 1.07
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