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need all ans QUESTION 31 If a security plots below the security market line, it is: O a defensive security, which expects to offer lower
need all ans
QUESTION 31 If a security plots below the security market line, it is: O a defensive security, which expects to offer lower returns. O ignoring all of the security's specific risk. O offering too little return to justify its risk. O underpriced, a situation that should be temporary. QUESTION 32 A project has a beta of 1.04, the risk-free rate is 4.3%, and the market risk premium is 6.6%. The project's expected rate of return is 26. QUESTION 33 Consider a 5-year bond with a par value of $1,000 and an 9% annual coupon. If interest rates change from 9% to 5% the bond's price will increase by $ QUESTION 31 If a security plots below the security market line, it is: O a defensive security, which expects to offer lower returns. O ignoring all of the security's specific risk. O offering too little return to justify its risk. O underpriced, a situation that should be temporary. QUESTION 32 A project has a beta of 1.04, the risk-free rate is 4.3%, and the market risk premium is 6.6%. The project's expected rate of return is 26. QUESTION 33 Consider a 5-year bond with a par value of $1,000 and an 9% annual coupon. If interest rates change from 9% to 5% the bond's price will increase by $Step by Step Solution
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