Which of the Following Statements Is Correct About a Stock

question 108

Multiple Choice

Which of the following statements is correct about a stock currently selling for $50 per share that has a 16 percent expected return and a 10 percent expected capital appreciation?

• A)its expected dividend exceeds the actual dividend
• B)its expected return will exceed the actual return
• C)it is expected to pay $3 in annual dividends
• D)it is expected to pay $8 in annual dividends

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Definitions:

Mean

The average of a set of numbers, calculated by summing the values and dividing by the count of numbers.

Variability

Indicates the range and dispersion of individual scores from the mean in a dataset.

Confidence Interval

A range of values, derived from sample statistics, that is likely to contain the value of an unknown population parameter, providing a measure of uncertainty around a sample estimate.

Confidence Interval

A series of values, extracted from data samples, that is presumed to include the value of a not yet identified population attribute.