Stock mutual fund and rest invested in risk less asset

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Reference no: EM132071447

1. ND Electric Company has 6-year bonds outstanding, 6 percent coupon rate paid semiannually, and a yield to maturity of 7 percent. If the yield to maturity remains at its current rate, what will the price be 2 years from now?

A) 965.6 B) 795.8 C) 912.6 D) 882.1

2. What is the portfolio beta if 75% of the portfolio is invested in a stock mutual fund (that has the same beta as a market portfolio) and the rest invested in a riskless asset?

A) 0.25

B) 0.50

C) 0.75

D) 1.00

Reference no: EM132071447

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