1 if two loans have same annual percentage rates thena the, Ask an Expert

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1. If two loans have same annual percentage rates then:

a. the loan must have the same effctive annual rate.

b. both loan must charge intrest using the same peroid of time

c. a borrow shaould have no prefrence over which loan is selected

d. the laon which chargs intrest the most frequently must have the higher stated rate.

e. the borrower might still save money by selecting one loan over the other

2. Stock Y has a beta of 1.5 and an expected return of 17.1 percent. Stock Z has a beta of 0.95 and an expected return of 13.4 percent. Required: If the risk-free rate is 5.45 percent and the market risk premium is 7.95 percent, are these stocks correctly priced?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92840959

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