A Gamma Computed on the Relationship Between Marital Happiness and Amount

question 48

Multiple Choice

A gamma computed on the relationship between marital happiness and amount of TV viewing is +0.78.This means that

• A)if we know how pairs of couples compare on TV viewing,we would be 78% better off predicting their ranks on marital happiness.
• B)happily married couples don't watch TV.
• C)couples that watch a lot of TV tend to be unhappy.
• D)TV causes divorce.

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Definitions:

Non-Cumulative

Refers to dividends or other types of distributions that, if not paid by a company in a given period, are not required to be paid at all.

Dividend Yield

The ratio that indicates how much dividends a company issues each year in relation to the price of its shares.

Par Value

Par value is the nominal or face value of a bond, share, or other financial instrument, set at the time of issue.

Dividend Growth Model

A method for valuing a stock by using predicted dividends and discounting them back to their present value.