ou invest in Handley Ltd shares at the start of 2019. Your investment returns are 10% in the first year of your investment, 15% in the second year and 8% in the third year.

Which of the following statements correctly describe your returns over this three-year period?

Group of answer choices

None of the other answers is correct

Your average annual geometric return (rounded to 2 decimal places) is 10.96%

More than one of the other answers is correct

Your average annual arithmetic return (rounded to 2 decimal places) is 17.67%

Which of the following statements correctly describe how the dividend growth model can be validly employed to value a security?

Group of answer choices

More than one of the other statements is correct.

The dividend growth model assumes that the growth rate itself is variable.

The dividend growth model requires a forecast of the next dividend expected to be paid.

The dividend growth model does not require the specification of a discount rate that appropriately reflects the time value of money