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Please fill the only blank in 7.3 and circle the right answer for 7.5 oustion Z For the following, fill in the blanks with the

Please fill the only blank in 7.3 and circle the right answer for 7.5 image text in transcribed
oustion Z For the following, fill in the blanks with the appropriate terms). For questions that give you or three choices to choose from, circle the most appropriate. (7.1) The return on an investment comes in two forms: the Cash Flzmponent and the Lapt tal_gain or loss. The return on investment in common stock comes in lilth legen two forms: Dnaideed ield and gains. Da cash payments by a corporation to its shareholders and represent the income component of the appiecintianordeptnnin the value of the stock. (7.2) The total return for an investment in common stock is the sum of the lapital gains (or losses) for an investment in common stock result from yield and the percentageeaital gain (or apta( kr astakrce erm caune -gains yield). The _autant___ yields yield is equal to is defined algebraically as gains yield is equal to --coftal (7.3) Treasury bills are virtually defaultlesso the T-bill rate is often called the The difference between the rate of return for a risky investment and the return on T-bills is the exless retusn (or) for the risky asset. (7.4) An investor's portfolio is theollectam the investor owns. The percentages of a portfolio's total value invested in each asset are the prctfalae weight (7.5) The variance and standard deviation of a portfolio (are /are not) equal to weighted averages of the corresponding characteristics of the individual securities. For most portfolios, the standard deviation is generally (greater than /less than /equal to) the weighted average of the standard deviations of the securities in the portfolio

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