1. Long Life Floors is expected to pay an annual dividend of $1 a share and plans on increasing future dividends by 2 percent annually. The discount rate is 10 percent. What will the value of this stock be 5 years from today (in $ dollars)? $_______

2. The weak form of the efficient market hypothesis implies that:

		No one can achieve abnormal returns using market information.
		Insiders, such as specialists and corporate board members, cannot achieve abnormal returns on average.
		Investors cannot achieve abnormal returns, on average, using technical analysis, after adjusting for transaction costs and taxes.
		All of above.

3. Over the past 3 years an investment returned 0.19, -0.09, and 0.08. What is the variance of returns?