1. Under what conditions will the investor realize the YTM on a bond with the same characteristics as a Treasury STRIPS?
2. The value of $1 equals to C$ 1.03 today. If the value of the value of $1 equals to C$ .95 one year from now, the Canadian dollar ____ by ____%. depreciated; 4.85 appreciated; 5.10 appreciated; 8.42 depreciated; 5.10
3. The common stock of Josep and Josep has an expected return of 21.1 percent and a beta of 2.3. The expected return on the market is 17.75 percent. What is the risk-free rate?