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Q2: This question is comprised of two parts. Both parts are REOUIRED. a) You are given the following information about 4 investments. All investments promise

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Q2: This question is comprised of two parts. Both parts are REOUIRED. a) You are given the following information about 4 investments. All investments promise a single payment at maturity and all risk premiums are constant across all time horizons. Based on the given information what are the default risk premium and the liquidity risk premiums? (10 points) b) You have the following information of two stocks: The correlation between the two stocks is 1(AB=1). What is the risk-free rate? (Hints: Rf=0,i=1nwi=1 ). (10 points)

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