1. An analyst gathers the following information for an index comprised of assets A, B, and C. An analyst gathers the following information for a market-capitalization-weighted index comprised of securities A, B, and C. The total return of the index is:

Security	BOP Price	EOP Price	Quantity of Shares	Dividend
A	10	15	100	1
B	30	31	300	1.2
C	20	15	200	0.5

2.

An investor buys a stock on margin. Assume that the interest on the loan and the dividend are both paid at the end of the holding period. The data related to the transaction are as follows:

Number of shares	500
Purchase price per share	$20
Initial Margin	40%
Commission	$10 on purchase, $10 on sales
Sale price per share	$24
Call money rate	5%
Dividend	$0.40 / share

The investors total return on this investment over the margin holding period is closest to:

3. What would an investor be willing to pay for a share of preferred stock that pays an annual $7 dividend if the required return is 7.75%?