pic: FINANCIAL X earn-ap- x 21670 x 21670 X Garam Dharam, C G Che Tutors * + utheast-2.prod-fleet01ythos. sap southeast 2.amazonaws.com/5bfdd02798410/29817/response content dispositioninline f name ABOUT ENT GOAL 2/12 1. Suppose that your company is expected to pay a dividend of $1.70/share next year. There has been a steady growth in dividends of 5.1%/year and the market expects that to continue. The current price is $35. What is the cost of equity? a) 0.100 b) 0.200 c) 0.015 d) 0.001 2. Which one of the following is best classified as unsystematic risk? a) An unexpected recessionary period b) An unexpected increase in interest rates c) An unexpected decline in the sales of a firm d) A sudden increase in the inflation rate 3. The goal of diversification is to eliminate: a) Total risk b) The market risk premium c) Systematic risk. d) Unsystematic risk 4. Which one of the following has a rate of return that is used as a proxy for the risk-free rate? a) Treasury notes (short-term government securities) b) Largo-company stocks c) Long-term corporate bonds d) Inflation, as measured by the consumer price index 5. A risk premium is defined as a) The expected market retum b) The premium you have to pay for investing in risky sets c) The premium you have to pay for investing in assets that have high returns with low risk TRAIN Barch