Rank the following asset classes in terms of risk, from highest risk to lowest risk:

I.Bonds

II.Individual stocks

III.S&P 500 Index

IV.Certificates of deposit

A)IV, II, III, I

B)II, IV, III, I

C)II, I, III, IV

D)II, III, I, IV

The market -beta of a stock

A)depicts the relationship between a stock expected return and its risk as measured by its standard deviation.

B)reflects the degree to which the stocks return moves with the return on a market index.

C)reflects the degree to which the stocks return varies with the company's earnings per share.

D)reflects the degree to which the stocks return varies with inflation.

Which of the following statements about initial public offerings (IPOs) is (are) true?

A)An IPO refers to the initial sale of a firm's stock or bonds.

B)The securities sold through an IPO are typically sold at a fixed price.

C)The securities sold during an IPO tend to be underpriced.

D)both B and C