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Use the following information to answer the question(s) below. Suppose all possible investment opportunities in the world are limited to the four stocks listed in

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Use the following information to answer the question(s) below. Suppose all possible investment opportunities in the world are limited to the four stocks listed in the table below: Price per Stock Share Number of Shares Outstanding (Millions) 25 45 Taggart Transcontinental Rearden Metal Wyatt Oil Nielson Motors $15.60 $13.00 $29.25 $26.25 10 26 Suppose that you are holding a market portfolio and you have invested $9000 in Rearden Metal. The amount that you have invested in Nielson Motors is closest to: $6000. ect Answer $10,500. $9000. $7715. Use the following information to answer the question(s) below. Consider the following information regarding corporate bonds: Rating AAA A BBB BB B CCC Average Default Rate 0.0% 0.1% 0.2% 0.5% 2.2% 5.5% 12.2% Recession Default Rate 0.0% 1.0% 3.0% 3.0% 8.0% 16.0%48.0% Average Beta 0.05 0.05 0.05 0.10 0.17 0.26 0.31 a Wyatt Oil has a bond issue outstanding with seven years to maturity, a yield to maturity of 7.0%, and a BBB rating. The bondholders' expected loss rate in the event of default is 70%. Assuming a normal economy the expected return on Wyatt Oil's debt is closest to: 4.9%. 3.0%. 3.5% Correct Answer 6.7%

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