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(R1)=[Dividends + (Ending value - Beginning value)]/(Beginning value)=[40+(500-490)]/490 =0.1 or 10%