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Question $3$

$1\mathrm{.}5$ pts

A firm has $$5$ billion outstanding in long$-$term bonds. The firm currently has sufficient cash flow to make the scheduled coupon payments but would struggle to make those payments in the future if a substantial weakening of the economy occurs. The most likely rating on these bonds is:

B$.$

cCC$.$

AAA.

$BBB.$

estion $4$

ensive" stock would most likely have a "beta" that is:

I to zero.