Question 1
Kayla purchased a stock for $56 a share and sold it six months later for $62. While she owned the stock, Kayla received two quarterly dividends of $0.70 per share. Kayla's annualized holding period return on this stock is
◦ 13.2%.
◦ 10.7%.
◦ 11.9%.
◦ 26.4%.
Question 2
The closest approximation to the real, risk-free rate of interest is
◦ the short-term Treasury bill rate plus the inflation rate.
◦ the short-term Treasury bill rate minus the inflation rate.
◦ the 10 year Treasury bond rate minus the inflation rate.
◦ the 10 year Treasury bond rate minus the 1 year Treasury bill rate.