58. The central bank of the U.S. is governed by a. 7-member Board of Governors b. 10-members Board of Governors c. 12-member Board of Governors 59. The security market line (SML) shows the relationship between_ a, standard deviation; beta b. standard deviation; required return C. required return; beta d. expected return; required return 60. S&P 500 index is a better representative of the US stock market than the DJIA because it a. includes more stocks than the DJIA b. gives equal weight to each stock c. is value-weighted d. Both (a) and (b) e. Both (a) and (c) 61. An issue of preferred stock pays an annual dividend SS. The growth rate for the firm's common stock is 10%. What should the preferred stock price be if the required rate of return on preferred stock is 8%? a. $41.67 b. $50.00 c. $62.50 d. None of the above 62. In cross-sectional analysis of financial ratios, a firm's ratio is compared with a. the same ratio for fee industry for the same period of time b. with the same ratio of the firm over time c. none of the above 63. If the systematic risk of a security (or its beta) is zero, its (required) retum would be zero as well. True False