1. The holding period return (HPR) for a stock that you bought at $92.50, received a dividend that year of $2.50, and sold the stock for $101.00 is:

a. 9.19%

b. 8.42%

c. 11.89%

d. 10.89%

2. What is the real rate of return that would be obtained if the investment in portfolio A obtained a nominal return for that period of 12.95% and the inflation rate is 4.5%?

a. nominal performance, in this case is not affected.

b. the actual yield will be greater than 10%

c. performance will be greater than rated performance

d. the actual return you will earn will be 8.1%

3. The Dividend Yield for a stock that you bought at $92.50, received a dividend that year of $2.50, and sold the stock for $101.00, is $2.50:

a. Certain

b. Fake