Elvis Costello has 10% of his stock holdings in stock A with a beta of 1.30, 20% are in stock B with a beta of .60, and the remainder is in a stock with a beta of 1.00. To the nearest .01, what is the beta on the portfolio?
municipal bond has an 4% annual coupon and a 4.15% yield to maturity. Which of the following statements is CORRECT?
- The bond sells at a premium.
- The bond has a current yield lower than 4%.
- The bond sells at par.
- The bond sells at a discount
- If a firm finances with only debt and common equity, and its debt ratio is 0.50, then its equity multiplier must be 2.5. TorF