Stock investing risk-required rate of return-interest rates

Reference no: EM1338742

1. How can it be possible to invest in two stocks and have less risk than if you invested all your money in only one of them?

2. Explain why a foreign investment project might have a lower required return than an otherwise-identical domestic project.

3. What is the relationship between interest rates and bond prices? When must the yield to maturity of a bond equal the current yield? What makes some bonds sell at a premium while others sell at a discount?

Reference no: EM1338742

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