1. Which of these is the total risk premium?
a. The proportion of return required by an investor on a risky security over and above the rate of return on equity
b. The proportion of return required by an investor on a risky security over and above the market rate of return
c. The proportion of return required by an investor on a risky security over and above the dividend rate of return
d. The proportion of return required by an investor on a risky security over and above the risk-free rate of return
2. The random-walk hypothesis is associated with which form of market informational efficiency:
a. Weak-form b. Medium-form c. Semi-strong form d. Strong-form