please can you help me with Q2 and 10. thank you very much Question...
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please can you help me with Q2 and 10. thank you very much
Question 2 A company has the opportunity to make one of two possible investments. Each investment costs R100 000. Financial analysts predict the following possible outcomes for the two investments: Outcome Probability Investment Expected return Pessimistic 50% 2% Charlie Investment Beta Expected return 6% 8% 30% 10% Most likely Optimistic 11% 20% 18% Calculate the range of returns for the two investments. 1. Range of outcomes = Charlie = 10%; Beta = 8% 2. Range of outcomes = Charlie = 8%; Beta = 2% 3. Range of outcomes = Charlie = 16%; Beta = 5% 4. Range of outcomes = Charlie = 12%;Beta = 19% Question 10 Bridgeside Capital issues 40-year bonds for a service expansion project. The company currently sells them on the market for R835 at an interest rate of 12% that is paid once every three months. If the bonds' par value is R1 000 and matures in 40 years, what should the coupon rate be on the bonds? 1. 2,50% 2. 4,21% 3. 8,73% 4. 10,00%
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