False for capital asset pricing model

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1. Company A issues 8% interest bonds with a maturity $1,000 in 10 years. If the coupon rate is 6% and they are paid semi-annually, what is the current price of the bond?

2. Which one is false for capital asset pricing model (CAPM)?

CAPM assumes that only the systematic risk is rewarded in the market, and the unsystematic risk can be diversified by creating the market portfolio

CAPM assumes the positive relation between risks and returns

CAPM can be used to forecast an expected return of individual security

CAPM has the same assumption of EMH as the fundamental analysis

Reference no: EM131835094

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