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Based on the following information, what is the diversifiable proportion of the stock? Stock Stock index Standard deviation 0.4 Correlation bet, stock and index 0.9

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Based on the following information, what is the diversifiable proportion of the stock? Stock Stock index Standard deviation 0.4 Correlation bet, stock and index 0.9 05 on Select one: a 36 ob 25 OC..19 O d..42 Based on the following information concerning Bank One's bonds: Par value: $1,000 Years to maturity: 15 years Coupon rate: 8% paid semiannually Beta: 0.1 Risk-free rate: 4% Market risk premium: 5% What is the expected price of the bond in 5 years? You believe that the risk free rate then will remain at 4% but the market risk premium will rise to 10% due to a worsening economic outlook. Select one: O a $1,282.64 O b. $1,263.87 O c. $1,274.01 O d. $1,233.84 e. $1,256.86

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