Q:Assume that the risk-free rate is 5.5% and the required return on the market is 11%. What is the required rate of return on a stock with a beta of 3? Round your answer to two decimal places.

Q:Suppose you are the money manager of a $5.46 million investment fund. The fund consists of four stocks with the following investments and betas:

Stock	Investment		Beta
A	$ 480,000		1.50
B	800,000		(0.50	)
C	1,580,000		1.25
D	2,600,000		0.75

If the market's required rate of return is 10% and the risk-free rate is 6%, what is the fund's required rate of return? Do not round intermediate calculations. Round your answer to two decimal places.

Q:Madsen Motors's bonds have 5 years remaining to maturity. Interest is paid annually, they have a $1,000 par value, the coupon interest rate is 12%, and the yield to maturity is 15%. What is the bond's current market price? Round your answer to the nearest cent.

Q:

A bond has a $1,000 par value, 8 years to maturity, and a 7% annual coupon and sells for $980.

What is its yield to maturity (YTM)? Round your answer to two decimal places.

%

Assume that the yield to maturity remains constant for the next two years. What will the price be 2 years from today? Do not round intermediate calculations. Round your answer to the nearest cent.

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