The Expected Rate of Return on a Constant Growth Stock

question 41

Multiple Choice

The expected rate of return on a constant growth stock is equal to the ____ plus its ____.

• A) risk-free rate;inflation premium
• B) risk-free rate;expected growth rate
• C) dividend yield;risk premium
• D) dividend yield;expected growth rate

---

Definitions:

Antidepressant Medication

Drugs prescribed to alleviate symptoms of depression by altering brain chemistry, often affecting neurotransmitter levels.

Psychotherapy

A treatment method for mental health disorders that involves talking with a mental health professional to bring about changes in thoughts, feelings, and behaviors.

Panic Attack

A sudden onset of intense fear or discomfort, often with physical symptoms such as heart palpitations, dizziness, and shortness of breath.

Shortness of Breath

A distressing sensation of not being able to breathe adequately, which can be symptomatic of various health issues.