Question
1A. The security market line (SML) is the line that describes the expected return-beta relationship for well-diversified portfolios only. the line that represents the expected
1A. The security market line (SML) is
the line that describes the expected return-beta relationship for well-diversified portfolios only. | ||
the line that represents the expected return-beta relationship. | ||
the line that is tangent to the efficient frontier of all risky assets. | ||
also called the capital allocation line.
| ||
All of the options. |
1B.
Assume that you purchased shares of High Flying mutual fund at a net asset value of $12.50 per share. During the year, you received dividend income distributions of $0.78 per share and capital gains distributions of $1.67 per share. At the end of the year, the shares had a net asset value of $13.87 per share. What was your rate of return on this investment?
29.43% | ||
30.56% | ||
31.19% | ||
32.44% | ||
29.18% |
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