Q1. A stock has a 40% chance of producing a 30% return, a 30% chance of producing a 20% return, and a 30% chance of producing a 10% return. What is Harper's expected return?

A. 9.0%

B. 15.0%

C. 21.0%

D. 18.0%

Q2.

The prices of high-coupon bonds tend to be more sensitive to a given change in interest rates than low-coupon bonds, other things held constant.

True or False