单选题 Study the following information, calculate the expected rate of return.
index is now selling at $490.
market index multiplier is expected to be 5X.
index earnings is expected to be $100.
dividend payment is expected to be $40.

A、 10%.
B、 20%.
C、 30%.

【正确答案】 A

【答案解析】Step1: Calculate the ending index value = $100×5=$500
Step2: Calculate the expected return.
E(R ₁ )=[Dividends + (Ending value - Beginning value)]/(Beginning value)=[40+(500-490)]/490 =0.1 or 10%