Evaluate the firms systematic risk

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1. What is the primary difference between 20-year bonds issued by the U.S. government and 20-year bonds issued by IBM?

2. The stock of Eastman Kodak has an estimated beta of 1.6. How would you interpret this beta value? How would you evaluate the firm's systematic risk.

3. If I invest in a security that will provide a annual return of $ 38,000. How much would I have to invest at a nominal rate of 8% to fund this annual cash flow?

 

Reference no: EM1350786

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