Consider the data for Roadrunner Enterprises for the following two questions. The company's next dividend is expected to be $2.00, and dividends are expected to grow at 5% peryear forever. The stock has a beta of 1.50. The risk fre rate is 3%, and stocks, as measured by the B&P500 Index, are expected to have a total return of 10% per year indefinitely 24. What is the stock's Fair Market Value? A) Less than $20 B) $20 to $25 C) $25 to $30 D) $30 to $35 B) More than $35 25. Which of the following is a weakness in using standard deviations and arthmetic averages in analyzang and predicting returns? A) Standard deviations are relative risk measures and the benchmark may not be appropriate. B) Standard deviations don't consider the entire risk of securities. C) An underlying assumption is that the data is normally distributed. The table below shows the Industrial Averages Refer to it to answer the following three question s. Year Beginning Ending 2006 10,717.50 12,463.15 2007 12,463.15 13.264.82 2008 13,264.82 8,776.39 2009 8,776.39 10,428.05 2010 10428.05 11,577.51 26. Calculate the geornetric average return for the 5-period A) Negatave B) 0% to20% C) 2.0% to 4.0% D) 4.0% to 8.0% E) More than 80% 27. Caloulate the arithmetic av A) Negative B)0% to 2.0% erage return ror une period. 20% to 4.0% D) 4.0% to 8.0% B) More than 80%