A sector fund is a mutual fund that tries to maximize the degree of diversification

Which of the following statements provides the best guidance for model building?

A) If the value of r2 increases as more variables are added to the model, the variables should remain in the model, regardless of the magnitude of increase. B) If the value of the adjusted r2 increases as more variables are added to the model, the variables should remain in the model. C) If the value of r2 increases as more variables are added to the model, the variables should not remain in the model, regardless of the magnitude of the increase. D) If the value of the adjusted r2 increases as more variables are added to the model, the variables should not remain in the model. E) None of the statements provide accurate guidance.

If the last dividend on Markowitz Trucking stock was $2 per share and if dividends are expected to grow 10% annually, what is the share price if the required return is 12%?

A) $100 B) $155 C) $110 D) $125 E) $130