Stocks a and B Have the Following Data

question 13

Multiple Choice

Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT?

• A) These two stocks should have the same price.
• B) These two stocks must have the same dividend yield.
• C) These two stocks should have the same expected return.
• D) These two stocks must have the same expected capital gains yield.
• E) These two stocks must have the same expected year-end dividend.

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Definitions:

Aggregate Planning

A process in procurement and production planning aimed at determining necessary capacity and resources to meet anticipated demand.

Transforms Forecasts

Involves using mathematical transformations on historical data to make future predictions.

Projected Demand

An estimate of the future demand for a product or service, based on historical data, market trends, and forecasting techniques.

Total Supply Chain

The entire sequence of processes involved in the production and distribution of a commodity, from raw materials to the final product delivered to the end user.