QUESTION 9 Stocks A and B each have an expected return of 16%, a standard deviation of 20%, and a beta of 1.5. The returns on the two stocks have a correlation coefficient of -0.8. Your portfolio consists of 50% A and 50% B. Which of the following statements is CORRECT? O a. The portfolio's beta is less than 1.5. b. The portfolio's standard deviation is greater than 20%, O c The portfolio's expected return is less than 16% Od. The portfolio's beta is equal to 1.5 QUESTION 10 "A 10-year 8% coupon bond that has par value of $1,000 and is selling today at 580. What's the bond's yield to maturity A. 0.0877 1.0.0800 OC 0.1200 8.0.0687 QUESTION 11 CSCO Corporation is considering the terms to be set on the call options it plans to issue to its executives Which of the following actions would decrease the value of the options, other things held constant? CSCO's stock price becomes more risky (higher variance) b. The life of the option is increased, le the time until it expires is lengthened The exercise price of the opbon is decreased d. The Federal Reserve takes actions that decrease the risk-free rate