Part $1.$ An investment that provides annual cash flows of $20080$ for $8$ years costs $87500$ today. At what rate would you be indifferent between accepting the investment and rejecting it$?$

A$.16\mathrm{.}74\%$

B$.15\mathrm{.}93\%$

C$.15\mathrm{.}9\%$

D$.15\mathrm{.}51\%$

E$.17\mathrm{.}6\%$

Part $2.$ Which of the following statements are true of well diversified portfolios expected return? Assume that all portfolio weights are positive.$$

I. It must be equal to or less than the expected return of the best performing security in the portfolio$$

II$.$ It must be equal to or greater than the expected return of the worst performing security in the portfolio$$

III. It is independent of the unsystematic risks of the individual securities held in the portfolio$$

IV$.$ It is not independent of the unsystematic risk of the individual securities held in the portfolio

A$.$ I, II$,$ and III only$$

B$.$ I and III only$$

C$.$ I, II$,$ and IV$$

D$.$ II and IV only$$

E$.$ I and II only

Part $3.$ Nine months ago you purchased $500$ shares of stock in Szeto worldwide at a price of $27\mathrm{.}84$ per share. The stock pays a quarterly dividend of $1\mathrm{.}85$ per share. Today, you sold all of your shares for $33\mathrm{.}20$ per share. What is the total amount of your dividend income on this investment?

A$.1850$

B$.2665$

C$.370$

D$.4515$

E$.2775$