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Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity was lower than the coupon rate. The investor
Suppose a mutual fund that invests in bonds purchased a bond when its yield to maturity was lower than the coupon rate. The investor should expect the bond's price to: decline over time, reaching par value at maturity. OOOO be less than the face value at maturity. exceed the face value at maturity. increase over time, reaching par value at maturity. Suppose you purchased a stock a year ago. Today, you receive a dividend of $11 and you sell the stock for $119. If your return was 14%, at what price did you buy the stock? After learning the course, you divide your portfolio into three equal parts (i.e., equal market value weights), with one part in Treasury bills, one part in a market index, and one part in a mutual fund with beta of 1.15. What is the beta of your overall portfolio?
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