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PLEASE ANSWER ALL THESE QUESTIONS IN FULL DETAIL AND PLEASE LABLE EACH QUESTION WHEN ANSWERING THEM.Thank you Discuss whether the following statement is true or
PLEASE ANSWER ALL THESE QUESTIONS IN FULL DETAIL AND PLEASE LABLE EACH QUESTION WHEN ANSWERING THEM.Thank you
- Discuss whether the following statement is true or false: Only weak companies issue debentures.?
- Would the yield spread on a corporate bond over a Treasury bond with the same maturity tend to become wider or narrower if the economy appeared to be heading into a recession? Would the change in the spread for a given company be affected by the firms credit strength?
- A stock had a 12 percent return last year, a year when the overall stock market declined. Does this mean that the stock has a negative beta and thus very little risk if held in a portfolio?
- Suppose you owned a portfolio consisting of $250,000 of long-term government bonds. a. Would your portfolio be riskless? b. Now suppose the portfolio consists of $250,000 of 30-day Treasury bills. Every 30 days your bills mature, and you will reinvest the principal ($250,000) in a new batch of bills. You plan to live on the investment income from your portfolio, and you want to maintain a constant standard of living. Is the T-bill portfolio truly riskless? c. What is the least risky security you can think of?
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