Assume the following returns:

Year 1Year 2Year 3

S&P 5004%8%11%

Stock A4%8%11%

Stock B2%2%2%

Stock C5%10%15%

Stock D2%4%5%

Based on the historical information provided, Stock ___ will have a beta between 0 and 1; Stock _____ will have a beta greater than 1.

A; C

B; D

C; D

D; C

Based on information from Fidelity, which of the following bonds with a 5 yr. maturity would have the highest yield?

AA rated corporate bond

BBB rated corporate bond

Treasury bond

AAA rated corporate bond