Question
True or false: 1. The coupon rate multiplied by par is the amount of money the bond holder will receive each year from the bond
True or false:
1. The coupon rate multiplied by par is the amount of money the bond holder will receive each year from the bond issuer.
2. A beta of 1.2 would equate to the market as a whole.
3. Continuing with Stock F, if the stock is selling at $23.50 I should purchase the stock.
4. The higher the standard deviation the higher the risk.
5. Coefficent of variation can be described as risk per unit of return.
6. Security A has a 9% expected return and 63% standard deviation. Security B has a 7% return and 50% standard deviation. Using co-efficient of variation data, security A is the best choice.
7. If I purchase a stock put option that contract allows me to buy stock at some predetermined price by a specific date.
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