1. Long-run average returns on equity investments:
a. are the same as the average returns on debt.
b. are lower than those on debt.
c. are much higher than those on debt.
d. are the same as the average returns on debt plus any dividends.
2. A portfolio is a collection of:
a. all risk-free assets in the market.
b. financial and non-financial assets in the market.
c. investment assets held by an investor.
d. financial assets and liabilities of a company.