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Which of the following statements concerning beta is correct? 0 A. it measures the amount of systematic risk possessed by an individual asset B. its

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Which of the following statements concerning beta is correct? 0 A. it measures the amount of systematic risk possessed by an individual asset B. its calculation is unnecessary and too complicated to be used efficiently O C. the portfolio beta is the sum of the single asset betas OD, the risk free asset is equal to 1 Consider two recent bond issues by Microsoft both have face values of $1,000 and coupon ates of 10% but one bond (callit the short bond) has tive years to maturity and the other, the long bond, has teenty years to maturity Assume hat yelds tot hom 19% to 5%Which bond will experience a greater prion ncreane and by how much? O A OB. Long bonds by $34 The charge in proe is equfor bot, bonds SC. Long bonds by $936 O D. Short bonds by $384 OE Short bonds by $936

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