Earn the least risk premium based on CAPM

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1. One year ago, you purchased 500 shares of SL Industries stock at a price of $49.17 a share. The stock pays an annual dividend of $1.61 per share. Today, you sold all of your shares for $48.20 per share. What is your total dollar return on this investment?

A. $320 B. $805 C. $1,290 D. $24,905

2. Which one of the following should earn the least risk premium based on CAPM?

A. Stock with a beta of 0.34

B. Stock with a beta of 2.82

C. Diversified portfolio with returns similar to the overall market.

D. Portfolio with a beta of 1.01

Reference no: EM132040363

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