What is the value of a bond that pays a monthly coupon of $2 on a face value of $1000, maturing in 4 months and currently trading at a yield to maturity of 5%?

Select one alternative:

• 1008.00
• 993.79
• 989.80
• 991.79
• 1000.00

The historical correlation between the excess returns of Firm Y and the excess returns of the market is 0.64. How much of the historical excess returns of Firm Y is not explained by the market?

Select one alternative:

• 59%
• 41%
• 80%
• 20%
• 64%