QUESTION 4 Adams Inc. has the following data: risk-free rate is 5%; market risk premium is 6%; and bota is 1,05. What is the required rato retum on the firm's stock based on the CAPM? a. 0.0605 b.0.1130 c. 0.0907 d. 1.0530 QUESTIONS A 10-year bond with an 8% annual coupon rate has a yield to maturity of 10%. Which of the following statements is CORRECT? a. If market interest rates decline, the price of the bond will also decline. b. The bond is currently selling at a price below its par value c. The bond is currently selling at a price above its par value d. The bond is currently seling at its par value