Various combination of portfolio of these two stocks

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Reference no: EM131495619

1. South Park Company issued a 6% bond three years ago at par value. The market interest rate on 15) comparable bonds today is 5%. The Franklin Company bond currently pays ________ a year in interest and the bond sells at a ________.

A) $50; premium B) $60; premium C) $60; discount D) $50; discount

2. If two stock have zero correlation, then the various combination of portfolio of these two stocks will no help to lower the risk.

True

False

Reference no: EM131495619

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