When stock market prices rise, the underlying cause could be a $\_\_\_\_$ equity premium or $\_\_\_\_\_$expectations of firm$$s dividend growth or some combination of the two. Select the best answers to fill in the blanks.

rising; rising

rising; falling

falling; falling

falling; rising

None of the above

Suppose that Apple stock is priced at $$120$ per share. lts one$-$year forward earnings per share is $$6.$ Suppose Apple's dividend payout ratio will be constant at $40\%$ and its earnings growth will be constant at $3\%$ indefinitely. What is the annualized long$-$run expected return of Apple's stock under these assumptions? Round to the nearest $1\%.$

$5\%$

$06\%$

$7\%$

$8\%$

None of the above