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28. The following table tells us the expected returns and risks of six portfolios: A, B, C, D, E and F. ELF 12% 8% 17%
28. The following table tells us the expected returns and risks of six portfolios: A, B, C, D, E and F. ELF 12% 8% 17% 6% 15% 5% Portfolios: A D Expected 16% 14% 20% 10% Return Standard 11% 13% Deviation Consider the following statements: i. Portfolio A is dominated by portfolio B and C ii. Portfolio D dominates portfolio F iii. Portfolio E is dominated by portfolio B Which statement is true? a. I is true. b. II is true. c. III is true. d. I and II are true. e. I and III are true. f. II and III are true. g. I, II and III are true h. None of the above is true. 30. Ridley stock has an expected return of 16% per year (effective). The next quarterly dividend is to be paid in two months and the expected amount is $10. The following 11 dividends are expected to grow at a rate of 2% per quarter. After that, dividends are expected to grow at a long-term rate of 0.75% per quarter. What is the current price of Ridley stock? a. 370.17 b. 374.78 c. 378.14 d. 379.44 e. 382.84 f. 387.61 g. None of the above are within $0.02 of the correct
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