Question

6. Which company has the highest risk as measured by beta (b)? A. Merrill Lynch (beta= 1.5) B. Microsoft (beta = 1.2) C. Coca-Cola (beta = 1) D. Florida Power (beta 0.7) B. 5% bonds are issued by the U.S. (Federal) government A. Treasury B. Corporate vi brod- T o thong bao ) C. Municipal de los otro longobbat D. Foreign brod-Tool bords) moto mbalcodes 8. Which expected return would you prefer? nuo blow A. 0% ) trong bato blow ml wody Los con l oodiot ovat C. 10% Shodno tonovi D. 100% h a d toisicoboy te wo De os olhos otroo bito con 9. In a bankruptcy, 4 _usually wind up with $0. 0000 A. secured creditors salt B. workers historiog or blurobov 000.00 C. U.S., state, and local governments D. common stockholders

Answer 1

6)	The higher the Beta, the higher the risk.
	A) Merrill Lynch (beta = 1.5)
7)	A) Treasury Bonds
8)	You would prefer the highest possible expected return.
	D) 100%.
9)	Common stockholders are last in line in the case of a bankruptcy.
	D) common stockholders.