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Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 14 percent and standard deviation

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Rank the following three stocks by their total risk level, highest to lowest. Night Ryder has an average return of 14 percent and standard deviation of 30 percent. The average return and standard deviation of WholeMart are 12 percent and 25 percent; and of Fruit Fly are 25 percent and 40 percent Fruit fly, Night Ryder, WholeMart Night Ryder, WholeMart, Fruit Fly WholeMart, Fruit Fly, Night Ryder WholeMart, Night Ryder, Fruit Fly Sally is choosing between two bonds both of which mature in 15 years and have the same level of risk. Bond A is a municipal bond that yields 5.75%. Bond B is a corporate bond that yields 7.75%. If Sally is in the 28% tax bracket, which bond should she select and why? sally should select Bond A because its interest income is not taxable. Sally will be indifferent between B and A and B since the taxable equivalent yield of Bond A equals the yield of Bond B. Sally should select Bond A because its TEY is greater than the yield of Bond B. Sally should select Bond B because the TEY of Bond A is less than the yield of Bond B. Yield to Maturity A 4.25 percent coupon bond with 8 years left to maturity is offered for sale at $983 36. What yield to maturity Is the bond offering? (Assume interest payments are paid semi-annually and par value is $1,000) 2.25% 2.36% 4.25% 4.50% Call Premium A 5.5 percent corporate coupon bond is callable in four years (or a call premium o(one year of coupon payments. Assuming a par value of $1,000, what is the price paid to the bondholder if the issuer calls the bond? (Assume annual interest payments.) 455 $220 $1000

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