Which of the Following Will Cause an Increase in the Current

question 65

Multiple Choice

Which of the following will cause an increase in the current price of a stock?

• A)A decrease in the risk-free return
• B)A decrease in the current dividend
• C)A decrease in the dividend growth rate
• D)Both an increase in the risk-free return or an increase in the current dividend

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Definitions:

Alternative Hypotheses

Hypotheses that suggest there is a statistically significant effect, relationship, or difference between two or more variables in a population.

Hypothesis Test

A statistical method used to determine the probability that a hypothesis regarding a specific characteristic of a population is true.

P-value

The p-value is a measure in statistics that helps determine the significance of results, indicating the probability of observing the given results, or more extreme, by chance if a null hypothesis were true.

Democratic Candidate

An individual running for political office who is a member of or endorsed by the Democratic Party.