Question 15 Bonds Rated B Have A 35 Chance Of Default In Five Years Bonds Rated Ccc Have A 65 Chance Of Default In Fi 1 (40.26 KiB) Viewed 28 times
Question 15 Bonds Rated B Have A 35 Chance Of Default In Five Years Bonds Rated Ccc Have A 65 Chance Of Default In Fi 2 (40.26 KiB) Viewed 28 times
Question 15 Bonds Rated B Have A 35 Chance Of Default In Five Years Bonds Rated Ccc Have A 65 Chance Of Default In Fi 3 (40.5 KiB) Viewed 28 times
Question 15 Bonds rated B have a 35% chance of default in five years. Bonds rated CCC have a 65% chance of default in five years. A portfolio consists of 25% B-rated and 75% CCC-rated bonds. If a randomly selected bond defaults in a five-year period, what is the probability that it was a B-rated bond? O 0.152 O 0.253 1 pts 0.425
Question 16 1 pts In which of the following situations would you get the largest reduction in risk by spreading your investment across two stocks? O The return values of the two stocks have a correlation value of -1.0. O The return values of the two stocks have a correlation value of 1.0. O The return values of the two stocks have a correlation value of 0.0.
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