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Match Each Term with the Correct Statement Below

question 70

Multiple Choice

Match each term with the correct statement below.
-A part of UML


Definitions:

Dividend-Discount Model

A method for determining the value of a stock by using predicted dividends and discounting them back to present value.

Mehra and Prescott

Two economists known for their work in the economics field, particularly for the Equity Premium Puzzle which questions why stocks have historically outperformed safer assets by such a wide margin.

Average Excess Returns

The average return on an investment above the benchmark or risk-free rate.

Rational Security Pricing

The concept that the market prices of securities reflect all available information and are valued accordingly in an efficient way.

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