1. Which of the following statement about floating rate preferred stock is true
a- more than one of the optio s ture b- the dividend rate changes quarterly c- the price of the stock fluctuates with the market d- the dividend rates is tied to the inflation rate.
2. What type of risk is properly reflected in a project's discount rate?
A) Market risk
B) Total risk
C) Specific risk
D) Diversifiable risk
3. What is the standard deviation of the market portfolio if the standard deviation of a well-diversified portfolio with a beta of 1.25 equals 20%?
A) 16.00%
B) 32.50%
C) 25.00%
D) 18.75%