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a. Would the required rate of return be lower on an A rated bond or a BBB rated bond, and why? b. What is the

a. Would the required rate of return be lower on an A rated bond or a BBB rated bond, and why?

b. What is the best measure of risk for an asset held in isolation and in portfolio?

c. Is the yield to maturity (YTM) on a bond an estimate or an actual rate of return on a bond? Explain.

d. If a stock has a beta measure of 0.75, discuss what this means.

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