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Suppose Two Equally Risky Shares,Div and Cap,offer the Same Expected

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Essay

Suppose two equally risky shares,Div and Cap,offer the same expected return before tax.Div shares pay a generous dividend but offer low expected capital gains.Cap shares pay low dividends but offer high expected capital gains.Which of the two shares would a pension fund prefer? An individual? A corporation? Explain your answers.


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To touch or stroke gently and affectionately.

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An individual's subjective evaluation of their own worth or abilities; their overall sense of personal value.

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The situation of being without a job while actively looking for work, often measured as a percentage of the workforce.

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