Which of the following statements best describes what would be expected to happen as you randomly add stocks to your portfolio?

a$.$ Adding more stocks to your portfolio reduces the portfolio's company$-$specific risk.

b$.$ Adding more stocks to your portfolio reduces the beta of your portfolio.

c$.$ Adding more stocks to your portfolio increases the portfolio's expected return.

d$.$ Adding more stocks to your portfolio increases the portfolio's overall risk.

e$.$ Adding more stocks to your portfolio increases the portfolio's systematic risk.

Which of the following statements is most correct?

a$.$ All else equal, long$-$term bonds have more interest rate risk than short$-$term bonds.

b$.$ All else equal, high$-$coupon bonds have more reinvestment rate risk than low$-$coupon bonds.

c$.$ All else equal, short$-$term bonds have more reinvestment rate risk than do long$-$term bonds.

d$.$ Statement a and c are correct

e$.$ All of the statements above are correct.

Which of the following statements is most correct?

a$.$ All else equal, if a bond's yield to maturity increases, its price will fall.

b$.$ All else equal, if a bond's yield to maturity increases, its current yield will fall.

c$.$ If a bond's yield to maturity exceeds the coupon rate, the bond will sell at a premium over par.

d$.$ All of the statements above are correct.

e$.$ None of the statements above is correct.

stock's dividend is expected to grow at a constant rate of $5$ percent a year. Which of the following statements is most correct?

a$.$ The expected return on the stock is $5$ percent a year.

b$.$ The stock's dividend yield is $5$ percent.

c$.$ The stock's price one year from now is expected to be $5$ percent higher.

d$.$ Statements a and c are correct.

e$.$ All of the statements above are correct.

order to have a yield to maturity greater than the coupon rate the bond must be:

a$.$ selling at a premium

d$.$ selling at discount

b$.$ selling at par

c$.$ a zero coupon bond

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