1) Last year, T-bills had a return of 4 % while an investment in large-company stocks returned an average of 9%. Which of the terms below refers to the difference between these two rates of return? A) Arithmetic B) Standard deviation C) Variance D) Risk premium E) Geometric return 2) Which of the following does standard deviation measure? A) Probability B) Volatility C) Real returns D) Average rate of return E) Risk premium ) The average compound return earned per year over a multiyear period is called the average return. A) Variant B) Real C) Standard D) Arithmetic E) Geometric 4) The average return, is the return earned in an average year over a multiyear period. C) Standard D) Variant E) Geometric 5 Colette bought a stock last year and sold it today for $8 a share more than her purchase price. Over that time, she received $1.50 in dividends. Which one of the statements below is correct regarding this investment? A) The capital gains yield is positive. B) The dividend yield is greater than the capital gains yield. C) The dividend yield is expressed as a percentage of the selling price D) The total dollar return per share is $8 E) The capital gain would have been less had Colette not received the dividends