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 $5. 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 the 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) return would be zero as well. True False