Calculating rates of return} The ESP stock index represents a portfolio comprised of 500 large publiclyr traded companies.
Calculating rates of return} The ESP stock index represents a portfolio comprised of 500 large publiclyr traded companies. On December 24, 200?, the index had a
value of 1.410 and on Deoember 24. 2003. the indexwas approximately 398. If the average dividend paid on the stocks in the index is approximately 4.0 peroentof the
value of the index at the beginning of the year, what is the rate of return earned on the S&P index? What is your assessment of the relative riskiness of investing in a
single stmk suoh as Google oompared to investing in the sap index (recall from Chapter 2 that you (ran purchase mutual funds that mimic the retums of the index)? The rate of retum earned on the 5&P 500 is ‘96. [Round to two decimal places.) What is your assessment of the relative riskiness of investing in a single stock. such as Google. compared to investing in the S&P index? (Select the best choice
below.) 0 A. There is not enough information given to answer this question. 0 B. In general. investing in a single stock has the same relative riskiness as investing in the 5&P index.
0 C. In general. investing in a single stock is riskier than investing in the S&P index. 0 D. In general. investing in the 3&F’ index is riskier than investing in a single stock.