1. Today, you sold 200 shares of FIDU, Inc. stock. Your total return on these shares is 13.5%. You purchased the shares one year ago at a price of $34 a share. You have received a total of $280 in dividends over the course of the year. Your capital gain yield is closest to what value?

a. 4.80%

b. 10.20%

c. 5.00%

d. 6.67%

e. 7.59%

2. Scotch stock has a beta of 1.3. The market return is 12.23%, and the required rate of return to this stock is 14.4%. The risk-free rate is closest to what value?

a. 5.0%

b. 2.0%

c. 4.0%

d. 3.0%