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