1.Jack purchased a industry stock for $37.53 per share and sold it 8 months later for $39.75 after receving a dividend of $1.75 at the end of the 8 months. What was Jack's holding period return(HPR), Simply Annualized Return, and Compound Annualized Return respectively?

A)10.58%,16.28%,15.87%

B)16.28%,15.87%,10.58%

C)10.58%,15.87%,16.28%

D)15.87%,10.58%,16.28%

2.Which of the following statements is TRUE?

A) If the risk-free is 2% and the MRP is 7 percentage points, then the expected return on the market would be 5%

B) Based on our autor's analysis, you would have less confidence about an expected return on long-term government bonds than you would for small company stocks.

C) According to CAPM, stocks with greater than average market risk would have an expected return higher than the expected return on the market.

D) For holding periods of more than a year, the annualized holding period return would be higher than the HPR.

3.Which of the following statements is TRUE?

A) Ceteris paribus, bonds with lower YTMs would have lower prices.

B) Borrowers sell bonds.

C) If you anticipate an increase in interest rates, you should purchasing long-term zero-coupon bond.s

D) The coupon payment part of a bond represents the capital gain part of the investor's total return.

4. Which of the following statements is TRUE?

A) Interest rates in the U.S. were extremely high in the early 1980s because of high maturity premiums.

B) The inflation premium is estimated by the autor to be the largest component of nominal interest rates in the period 1950-1999.

C) For a given nominal interest rate, higher inflation implies a higher real interest rate.

D) If interest is compounded more than once a year, the EAR would be lower than the APR