Section III: Risk & Return (a) You purchased 1000 shares of Apple Inc. two year ago for $37.50/share. The value of the stock has now risen to $72.34. Each year you received a dividend of $2.75/share i) What is the total dollar return on your investment? ii) What is the total percentage return on your investment? What is the average annual return on your investment? iv) If the return on annual T-bill during the same period was 6%, how much is the risk premium on this investment? v) What is the real risk premium if inflation during this period is 3% annual? (b) Suppose Company X has the following returns: 2016 2017 2018 -5% 15% 2% 7% 2019 i) What is the arithmetic Average Return? ii) What is the Geometric Average Return? iii) What is the Variance and Standard Deviation of Return? (c) Explain in your own words, what form of market efficiency (Weak, Semi Strong, Strong) does our current economy operate in and Why (Provide Examples to illustrate your point)