IUVIUVV Intercept Beta 0.00793 0.9207 0.00287 1.15489 Var (residuals) St. Dev. (residuals) 0.00268 5.17% 0.00013 1.12% 0.20% 25. Based on Information Ratio and Potential Sharpe Ratio Approach, should you add BA stock to SPY portfolio (Rf = 0.2%)? A. Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.1984 B. Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.2009 C. Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.2042 D. Yes, adding BA stock can potentially improve the Sharpe Ratio up to 0.2563 E. No, Potential Sharpe Ratio of the portfolio will be reduced after adding BA stock to it 26. A bond pays annual interest. Its coupon rate is 9%. Its value at maturity is $1,000. It matures in 3 years. Its yield to maturity is currently 6%. The duration of this bond is years. A. 2.54 B.2.77 C. 2.99 D. 3.00 27. You buy a bond with a $1,000 par today for a price of $875'he bond has 4 years to maturity makes annual coupon payments of $75 per year. You hold the bond to maturity but you do no reinvest any of your coupons. What was your Effective Yield over the holding period? A. 10.40% B. 9.57% C. 8.78% D. 7.45%