Stocks X and Y Have the Following Data A) Stock Y Has a Higher Dividend Yield Than Stock

question 7

Multiple Choice

Stocks X and Y have the following data.Assuming the stock market is efficient and the stocks are in equilibrium,which of the following statements is CORRECT? $$\begin{array} { l c c } \text { } & X & Y \\\text { Price) } & \$30 & \$30 \\\text { Esgected growth (canstant) } & 6 \% & 4 \% \\\text { Required return } & 12 \% & 10 \%\end{array}$$

• A) Stock Y has a higher dividend yield than Stock X.
• B) One year from now, Stock X's price is expected to be higher than Stock Y's price.
• C) Stock X has the higher expected year-end dividend.
• D) Stock Y has a higher capital gains yield.
• E) Stock X has a higher dividend yield than Stock Y.

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Definitions:

Skinner

B.F. Skinner was an influential American psychologist known for his research in behaviorism and for developing the theory of operant conditioning, focusing on the consequences of actions to modify behavior.

Operants

Behaviors that are controlled or modified by their consequences, such as rewards or punishments, in the context of operant conditioning.

Reinforcers

Stimuli that, when presented after a behavior, increase the likelihood of that behavior occurring again in the future.

Instrumental Conditioning

A form of learning in which the participant receives a reinforcer only after performing the desired response, and thereby learns a relationship between the response and the reinforcer.