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Question 5 1 pts Jake buys 500 shares of DEF Corp. for $35.60. One year afterwards, DEF Corp.s share price decreased to $35.

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Answer #1

q5.

c.$700.

total return on investments = [(35.40 ending price -35.60 beginning price) +1.60 dividend per share]*500 shares

=>$700.

q6.

A.8.14%.

return percentage = [(33.80 ending price -31.50 beginning price)+1.20 dividend per share]/31.50*100

=>11.11%.

risk premium = 11.11% return - 2.97% risk free rate

=>8.14%.

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