1. Currently Chester is paying a dividend of $17.63 (per share). If this dividend stayed the same, but the stock price rose by 10% what would be the dividend yield?

Select: 1

11.64%

11.17%

7.16%

8.95%

2. Which one of the following statements is correct?

1. The risk-free rate of return has a risk premium of 1.0.

2. The reward for bearing risk is called the standard deviation.

3. Risks and expected return are inversely related.

4. The higher the expected rate of return, the wider the distribution of returns.

5. Risk premiums are inversely related to the standard deviation of returns.