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finance problems




Question;5-2Wilson Wonder?s bonds have 12 years remaining to maturity. Interest is paid annually, the bonds have a $1,000 per value, and the coupon interest rate is 10%. The bonds sell at a price of $850. What is their yield to maturity?6-7Suppose rRF = 5%, rM = 10%, and rA = 12%a. Calculate Stock A?s beta.b. If Stock A?s beta were 2.0, then what would be A?s new required rate of return?6-11You have a $2 million portfolio consisting of a $100,000 investment in each of 20 different stocks. The portfolio has a beta1.1. You are considering selling $100,000 worth of one stock with beta of 0.9 and using the proceeds to purchase another stock with a beta of 1.4. What will the portfolio?s new beta be after these transactions?


Paper#51275 | Written in 18-Jul-2015

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