Finance 3303Fall 20s8 ByenExam 2Page 3 of 21 6. A stock's beta is a measure of its: A. systematic risk B. unsystematic risk C. company specific risk D. diversifiable risk ering Incorporated has a beta of 1.0. If the expected return on the market is 12%, what is the expected return on Sterling Incorporated stock? St A.9% B, 10% C. 12% D. Insufficient information is provided If there is a 20% chance we will get a 16% return, a 30% chance of getting a 14% return, a 40% chance of getting a 12% return, and a 10% chance of getting an 8% return, what is the expected rate of return? A. 15% B. 12% C. 13% D. 14% 9. Horschel Inc. has issued 30-year semiannual coupon bonds with a face value of $1,000 the annual coupon rate is 6% and the current yield to maturity is 7%, what is the firm current price per bond? A) $875.28 B) $1,000.00 C) $934.34 D) $466.79 E) $1,158.76