Question 3 Suppose all possible investment opportunities in the world are limited to the four stocks list in the table below: Stock Name Price per Share ($) Taggart Transcontinental Rearden Metal Wyatt Oil Nielson Motors 15.6 13 29.25 26.25 Shares Outstanding (Millions) 25 45 10 26 Suppose that you have invested $30,000 in this market portfolio. Then the amount that you have invested in Wyatt Oil is closest to: O $6,000 O $7,800 O $4,500 O $10,500 A Government has issued two bonds: Bond A will pay a coupon of 100 on 1 January next year, and which will then pay coupons on 1 January every year thereafter (forever), with the coupon increasing by 3% every year. Bond B will pay a fixed annual coupon each year (forever), with the coupon being paid on 1 January each year. Assume that the appropriate discount rate for both bonds is 7% in annualized terms. If it is now January 2, and both bonds have the same current price, what is the coupon of Bond B? O A 200 O B.260 OC.233 OD. 175