17. The expected rate of return on the stock went up by one percentage point...

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17. The expected rate of return on the stock went up by one percentage point and the growth rate of its dividend went up by one percentage point What will happen to the stock price as a result of these events? A. The stock price will increase. B. The stock price will not change. C. The stock price will decline. D. It is impossible to determine what happens to the stock price. 18. The bond has an 12 % annual coupon rate, a S1,000 par value, it matures in 15 years and pays coupon quarterly. The curent bond price is $900. What is the bond's annual yield? A. 14.28% B. 13.60% C. 12.85% D. None of the answers is correct. 19. Which point in the following graph stands for the market portfolio? (R) B T A F p A. B . C. F D. A 20. Which line in the following graph is the efficient frontier? (R) A A. Line AB B. Line LB C. Line AL None of the above D

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