Which one of the following defines risk premium?

The 30-year U.S. Treasury bond rate minus the 1-year U.S. Treasury bill rate.

The return on a risky asset minus the risk-free rate.

the return on a risky asset minus the inflation rate.

You purchased 300 shares of ABC stock and held it for 4 years before selling it. What is the value of "m" when computing the effective annualized return on this investment?

.25

4.00

0.33

One year ago, you purchased 400 shares of ABC at $33.60 a share. During the past year, you received a total of $200 in dividends. Today, you sold your shares for $35.80 a share. What is your total return on this investment over this period?

1.49%

8.04%

5.66%