Which of the following statements about the Valuing Shares section of the lecture material are TRUE:

1 The long-term returns of a diversified share portfolio will tend to be driven by real economic growth (which itself is driven by growth in productivity), inflation and the average dividend yield paid by the shares.

2 The factors that drive the total returns from investing in the shares of an individual company include interest rates, the returns on an average share on the stockmarket, the sensitivity of the companys share price to movements in the economy and any relevant information that is specific to the company or the industry within which it operates.

Neither of the statements are true (both are false)

Only statement 1 is true

Only statement 2 is true

Both statements are true (neither are false)