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If the standard deviation of Stock A's returns are greater than the standard deviation of those on Stock B's return, then the beta of Stock

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If the standard deviation of Stock A's returns are greater than the standard deviation of those on Stock B's return, then the beta of Stock A must be greater than the beta on Stock B. A. True B. False C. None of the above. The Blackburn Group has recently issued 20-year, unsecured bonds rated BB by Moody's. These bonds yield 443 basis points above the U.S. Treasury yield of 2.76%. The yield to maturity on these bonds is A. 7.19% B. 12.23% C. mortgage bonds. D. 4.43% Breckenridge, Inc. has a beta of .9. If the expected market return is 14 percent and the risk- free rate is 10 percent, what is the appropriate expected return of Breckenridge (use the CAPM)? A. 10 percent. B. 13.4 percent. C. 6.0 percent. D. 13.6 percent. A bond matures in 18 years has a $1,000 par value. The annual coupon interest rate is 8 percent and the market's required yield to maturity on a comparable-risk bond is 15 percent. What would be the value of this bond if it paid interest semiannually? A. $567.87 B. $571.04 C. $953.14 D. $953.14 E. $1,661.78 Which of the following statements about bonds is true? A. If market interest rates are below a bond's coupon interest rate, then the bond will sell above its par value. B. Bond prices move in the same direction as market interest rates. C. Long-term bonds have less interest rate risk than do short-term bonds. D. As the maturity date of a bond approaches, the market value of a bond will become more volatile. E. None of the above

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