Suppose you currently hold stock in an automobile company. Which of the following stocks should you purchase if you want to reduce the risk of your portfolio as much as possible? options:

	Stock in a manufacturer of construction steel.
	An oil stock.
	A railway stock.
	Stock in another automobile company.
	A gold mining stock.

Xanth Corporation is a Canadian Company. They have an income statement that includes the following data: Cost of Goods Sold = $80,000; Income Taxes = $10,000; Administrative Expenses = $5,000; Interest Expense = $3,000; Depreciation Expense = $4,000. Their average tax rate was 20%. No depreciation expenses is included in cost of goods sold or administrative expenses. What is Xanth Corporation's Net Income? options:

	$40,000
	$58,000
	$75,000
	$50,000

Calculate the real rate of interest if the nominal rate of interest is 2.5% and the inflation rate is 5.5%. options:

	8.00%
	-2.93%
	-3.00%
	-2.84

Priti's Fine Dining is a restaurant that is expecting the following performance next year. There is a 20% probability of a boom market next year, and if that occurs, Priti share value will increase to $150 and they will pay a $6 dividend. There is a 40% probability of a normal economy and if that occurs, Priti's share value will grow to $80 and they will pay a $3 dividend. There is a 40% probability of a recession and if that occurs, Priti's share value will drop to $20 and they will pay a dividend of $1. The stock is selling today for $60. What is the expected rate of return of Priti's Fine Dining? options:

	45.67%
	60.00%
	16.67%
	21.33%

Which of the following terms would be used to refer to a bond with a AA rating?options:

	Investment grade.
	Junk Bond.
	Risk-free grade.
	High-yield.
	Speculative grade.

What is the yield to maturity of a bond with the followign characteristics? The coupon rate is 8% with semi-annual payments. The current price is $1200 and there are 10 years left until maturity.options:

	5.39%
	8.00%
	4.00%
	2.69%