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Capital market history since 1926 shows that the annual rate of return on _____ has been more volatile than the annual rate of return on_____.

Capital market history since 1926 shows that the annual rate of return on _____ has been more volatile than the annual rate of return on_____.

.

A.

large company stocks; small company stocks

B.

U.S. Treasury bills; small company stocks

C.

U.S. Treasury bills; long-term government bonds

D.

large company stocks; U.S. Treasury bills

E.

long-term government bonds; small company stocks

Marple Movers announced that its next annual dividend will be $0.40 per share annual dividend. Dividends will be $0.60 and $0.75 a share over the following two years, respectively. After that the dividend are projected to increase at a constand growth rate of 2.5 percent per year. How much is one share of this stock worth at a rate of return of 14 percent?

.

A.

$7.87

B.

$6.84

C.

$5.83

D.

$8.06

E.

$4.98

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