Example of systematic risk

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1. You are evaluating the required return of General Motors, and are looking at the various operational and costs risks they face. Which of the following is an example of a systematic (non-diversifiable) risk?

2. What is the expected return on the market portfolio at a time when the risk free rate (e.g., T-Bill rate) is 4% and a stock with a beta of 1.5 is expected to yield 16%?

3. A 3-year, semi-annual bond has an 8% coupon rate and a face value of $1,000. If the yield to maturity on the bond is 10%, what is the price of the bond?

Reference no: EM132017563

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