Question 11: Which of the following formulas is useful for finding long term returns basedon short term returns? (a) Capital Asset Pricing Model (CAPM) Security Market Line (SML) formula:rrii=rrff +BBü(rrmm

-rrff) (b) Fisher formula:1+rrnnnnmmiinnrrrr1+rrrrrrrrrr =_1+rriinnf frrrriiinnnn (c) Perpetuity or Dividend Discount Model (DDM) formula:CC1PPo=-rr-gg (d) Expectations hypothesis of the term structure of interest rates:(1+rro-nn)nn=(1+rro¬1)(1+rri-2)(1+rrz-3)...(1+rrnn-1¬nn) (e) Bond pricing formula1FFttPPo =CC11--(1+rr)rr+(1+rr)T