A-Gr8 Company has a current share price of $15.28 per share and is expected to pay a dividend yield of 4%. If the expected share price at the end of the year is expected to be $16.05, what is the total expected return at the end of the year closest to? (2 marks)

		4.80%
		5.00%
		9.04%
		8.80%

Which of the following statements is INCORRECT? (2 marks)

		The risk premium investors can earn by holding the market portfolio is the difference between the market portfolio's expected return and the risk-free interest rate.
		If we assume that the market portfolio (or the S&P 500) is efficient, then changes in the value of the market portfolio represent systematic shocks to the economy.
		A stock's beta is calculated as the covariance between the stock's price and the market portfolio return, divided by the variance of the market portfolio return.
		A stocks standard deviation is a measure of the total risk

Chans Spring Roll (CSR), a seller of frozen spring roll, is considering introducing a healthier version of its product that will be low in sugar and gluten-free. The firm expects that sales of the new spring roll will be $20 million per year. While many of these sales will be to new customers, CSR estimates that 50% will come from customers who switch to the new, healthier spring roll instead of buying the original version. Suppose that 25% of the customers who would switch from CSRs original spring roll to its healthier version will switch to another brand if CSR does not introduce a healthier spring roll. What level of incremental sales is associated with introducing the new spring roll in this case? (4 marks)

		$12.5 million
		$10 million
		$15 million
		$17.5 million