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Question 13 1 pts Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is

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Question 13 1 pts Suppose you hold a portfolio consisting of a $10,000 investment in each of 8 different common stocks. The portfolio's beta is 1.25. Now suppose you decided to sell one of your stocks that has a beta of 1.00 and to use the proceeds to buy a replacement stock with a beta of 1.05. What would the portfolio's new beta be? Do not round your intermediate calculations. 1.41 1.24 O 1.26 1.14 01.11 Question 14 1 pts Which of the following statements is CORRECT? On an expected yield basis, the expected capital gains yield will always be positive because an investor would not purchase a bond with an expected capital loss. If a coupon bond is selling at par, its current yield equals its yield to maturity, and its expected capital gains yield is zero. On an expected yield basis, the expected current yield will always be positive because an investor would not purchase a bond that is not expected to pay any cash coupon interest. If a bond is selling at a discount, the yield to call is a better measure of return than is the yield to maturity. The current yield on Bond A exceeds the current yield on Bond B; therefore, Bond Amust have a higher yield to maturity than Bond B

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