QUESTION 20 Salice, Inc. has issued 20,000 shares and has 2,500 treasury shares. 10,000 shares are authorized but not issued. How many shares are authorized? O a. 7,500. O b. 30,000. O c. 12,500. O d. 22,500. QUESTION 21 If an investor combines two securities with a correlation of minus 1: O a. It is possible to end up with zero risk. O b. The risk of the resulting portfolio will be equal to the risks of the component securities. Oc. The risk of the resulting portfolio will be the average of the risks of the component securities. Od. The risk of the resulting portfolio will always be greater than the risk of either of the component securities. QUESTION 22 If the nominal rate of return on an Aksoy Corporation bond is 11%, the pure rate is 3%, and the risk premium is 4%, what is the inflation premium on this bond? O a. 0% O b.3.62% O c. 7.12% O d.4%. QUESTION 23 What is the real rate of interest from a Yeagley Corporation bond when the pure rate of interest is 4%, the inflation premium is 5%, and the risk premium is 7%? O a. 9.20% O b. 16.84%. O c. 12.35%. O d. 11.28%