If the risk-free rate increases, the required rate of return for a stock with risk less than the market will ____.

		increase
		decrease
		stay the same

A stock is expected to pay the following dividends over the next two years: $2.05 and $2.15.

The investor can buy the stock today for $42.

What is the annualized holding period return if the price in two years is $41?

		-1.2%
		3.7%
		7.6%
		6.2%