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Why Is It Unwise to Conclude That If Two Variables

question 168

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Why is it unwise to conclude that if two variables are correlated, one must have caused the other?


Definitions:

Dividend Growth

The annual rate at which a company's dividend payments to shareholders increase.

Dividend Growth Rate

The annual growth percentage rate of dividends paid to shareholders by a company.

Expected Dividend

The dividend payment a shareholder anticipates to receive based on the company's current dividend policy or trends.

Stock Price

The present cost at which a company's share is traded in the market.

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