The common lock of United Industries has a bela of 134 and expected return of 14.29 percent. The risk-free rate of return is 3.7 percent. What is the expected market risk premium? 10.63% 11.606 3. 4. 7.02% 05 QUESTION 16 The four most fundamental factors that affect the cost of way are (1) production opportunities, (2) time preferences for consumption, Orisk, and (1) inflation o Thue QUESTION 17 A 15 your bond with a face value of $1,000 currently sells for $850. Which of the following statements is CORRECT? 1. The band's current yield is equal to its coupon rate 2. The band's current yield exceeds its yield to maturity, 3. The bondscoupon rate exceeds its current yield. 4. If the yield to maturity stays constant until the bond matures, the band's price will remain at 5850 5. The band's yield to maturity is greater than its coupon rate. QUESTION 18 Which of the following statements is CORRECT? 1. An investor can climinate virtually all diversitable risk i he or she holds a very large, weil diversified portfolio of stocks. 2.Once a portfolio has about 40 stocks, adding additional stocks will not reduce its risk by even a small amount 3. It is impossible to have a situation where the market risk of a single stock is less than that of a portfolio that includes the stock 4. An investee can eliminate virtually all market risk if he or she holds a very large and well diversified portfolio of socks 5. The higher the correlation between the stocks in a portfolio, the lower the risk inherent is the portfolio Click Save and submit to see and submit. Click Save Arteriosciw all answers