What is the real dividend yield for the investment

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1. An investment has a current price of $92 and has paid a $5 dividend over the holding period. If the investment was purchased for $80 and inflation has been 3%, what is the real dividend yield for the investment?

A. 20.6%

C. 5.4%

E. 6.25%

B. 3.2%

D. 2.3%

2. If the risk-free rate is 6% and the expected return of the market is 12%, what is the expected return of a portfolio that is equally invested in treasury bills and a stock with a beta of 1.3?

A. 9.9% B. 10.2% C. 13.8% D. 12.9% E. 19.8%

Reference no: EM132031702

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