Author Question: A high-yield stock is one: A) For which the capital yield is a large portion of the total return. ... (Read 29 times)

Beheh · **on:** Jul 10, 2018

A high-yield stock is one:

A) For which the capital yield is a large portion of the total return.
B) That earns unusually high total returns.
C) For which the dividend yield is low relative to the capital gain.
D) That has a high dividend growth rate.
E) That sells for a price much higher than what it was purchased for.

Question 2

Which of the following is true about the Security Market Line (SML)? The SML:

A) Expresses a relationship between expected returns and systematic (non-diversifiable) risk.
B) Expresses the equilibrium relationship between expected returns and risk for all stocks.
C) Expresses the long-run average return.
D) Is a function of beta.
E) All of the above are true.