Which of the following is a characteristic of beta? a)Beta measures only the volatility of returns on an individual bond relative to a bond market index. b)A beta of 1.0 is of equal risk with the...

Which of the following is a characteristic of beta?

a)Beta measures only the volatility of returns on an individual bond relative to a bond market index.

b)A beta of 1.0 is of equal risk with the market.

c)A beta of greater than 1.0 has less risk than the market.

d)Two of the above are true.

A project's coefficient of variation is 0.40. The project has a positive coefficient of correlation of 0.20. The expected value is $2,000. What is one standard deviation?

a)$400.00

b)$500.00

c)$800.00

d)$1,000.00

A project's cash flows have a beta of 1.2, a standard deviation of $200, and a coefficient of variation of 0.40. What is the expected cash flow?

a)$80

b)$167

c)$240

d)$500

The coupon rate on a debt issue is 12%. If the yield to maturity on the debt is 9.33%, what is the after-tax cost of existing debt if the firm's tax rate is 34%?

a)3.17%

b)4.08%

c)6.16%

d)7.92%