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In the constant growth DDM, if the next year's dividend D2 is $1, growth is 4%, and r is 10%, then what is the value of the stock Vo? $17.33 $18.67 $16.67 $19.16 The alpha of the SS fund is Asset Beta Expected Return Standard Deviation 4% 0% 0 Risk-free SS fund Market 7% 16% 0.3 10% 20% 1 1% 1.6% 0.4% 1.2% 0% 0.8% What is the real rate of interest after taxes for an investor in the 15% tax bracket, if the nominal rate is 5% and inflation is 3%? 1.04% 0.87% 0.96% 1.21% 1.46% 1.34% If a 5-year, 3% coupon, Aa-rated corporate bond trades at 105 (par=100), then investors should expect that The bond's total rate of return will be less than 3% over the next year The bond's total rate of return will be greater than 3% over the next year If the bank discount yield is 3.86% for a 210-day Treasury Bill, then the price, with par=100, is about 98.25 97.75 97.25 96.75 98.75 96.25 Suppose a 90-day Freddie Mac discount note provides a yield of 4%, and a 90-day FHLB discount note provides a yield of 3.6%. If the investor has a 25% federal and a 5% state income tax rate, then the Freddie Mac after-tax yield is and the FHLB after-tax yield is 3.8%, 3.42% 3.8%, 3.6% 2.8%, 2.52% 3%, 2.7% 2.8%, 2.7% 4%, 3.6% 4%, 3.42% 3%, 2.52% Suppose you short sell 300 shares of stock at a price of $40/share. If the stock price falls to $31/share and you close out your position, and the company doesn't pay dividends, then your profit is $2400 $3600 $2700 $3000 $3300 The date is April 24, 2021. If you enter into a long straddle using a strike price of 49, if the stock price finishes at 48 at maturity, then you have a ____ Ignore commissions. Stock price = 47.50 Calls Puts Strike Price July July 47 2.43 1.86 48 1.83 2.26 49 1.29 2.72 50 0.80 3.23 Loss of 0.92 Loss of 1.72 Loss of 0.29 Loss of 3.01 A portfolio with a 25% standard deviation has an expected return of 15%, and T-bills yield 6%. This portfolio has a Sharpe ratio of ___- 0.36 .54 .6 .28 0.42