Sophia Principles of Finance Milestone 3,

Sophia Principles of Finance Milestone 3 1 Anais purchased stock with an initial share price of $52, and sold it when the share price was $60. While she owned the stock, she earned $7 in dividends. What was her total percentage return on the investment? 13.33% 25.00% 28.85% 19.83% CONCEPT Understanding Returns 2 Which of the following is true of systematic risk? It is affected by the level of diversification within a portfolio. Research shows that investors can best mitigate this type of risk by holding ≤ 30 assets within a portfolio. It can be hedged against by choosing investments with negative correlations. It is the risk associated with a general downward turn of the market or a market segment. CONCEPT Diversification 3 A security that falls below the security market line has __________. a high expected return and a high price a low expected return and a low price a high