You Expect a Share of EconNews

question 51

Multiple Choice

You expect a share of EconNews.Com to sell for $65 a year from now. If you are willing to pay $61.06 for one share of the stock today, you expect a dividend payment of $4, and the rate of return on safe assets is 5 percent, how much is your risk premium?

• A)1.5 percent
• B)6.5 percent
• C)8.0 percent
• D)13.0 percent

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Definitions:

Assimilation-Contrast

A cognitive process where people assimilate new information into their existing views if it's similar but contrast it sharply if it's very different, affecting attitudes and perceptions.

Bus Rage

Intense anger and aggressive behavior by bus drivers or passengers, often in response to stressful conditions or provocations during commutes.

Social Stigmas

The perception of disgrace or disapproval attached to a person or group, often based on characteristics that distinguish them from social norms.

Homosexuality

A term describing romantic or sexual attraction or behavior between members of the same sex or gender.