Assume the S&P $500$ has a dividend yield of $3\mathrm{.}5$ percent. Analysts expect overall dividends to grow at $3\mathrm{.}6$ percent annually.

Treasury bills yield $2\mathrm{.}3$ percent. The expected market rate of return is

percent.

Multiple Choice

$7\mathrm{.}1$; $4\mathrm{.}8$

$9\mathrm{.}4$; $4\mathrm{.}8$

$9\mathrm{.}4$;$3\mathrm{.}5$

$7\mathrm{.}1$; $3\mathrm{.}6$

$7\mathrm{.}1$; $3\mathrm{.}5$