1. Please help me discuss the different types of risks faced by financial institutions, and how they can best respond to those risks. your discussion should not be less than 500 words and please provide the links to the references you will use.
2. King Farm Manufacturing Company’s common stock has a beta of 1.85. If the risk-free rate is 3.29 percent, and the market return is 5.86 percent, calculate the required return on King Farm Manufacturing’s common stock.
Round the answers to two decimal places in percentage form.
3. A 15 year 7% semiannual coupon bond has a price of $769.40. Its YTM is 10%. What is its expected return if your investment horizon is 15 years? Assume that the reinvestment rate equals the YTM.