What Would You Expect to Happen to the Price of a Share

question 64

Multiple Choice

What would you expect to happen to the price of a share of stock on the day it goes ex-dividend if you ignore taxes? The price should:

• A) increase by the amount of the dividend.
• B) decrease by the amount of the dividend.
• C) decrease by one-half the amount of the dividend.
• D) remain constant.

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Definitions:

Cross-Sectional

A type of observational study that involves the analysis of data collected from a population, or a representative subset, at one specific point in time.

Time Series

A sequence of data points, typically consisting of successive measurements made over a time interval.

Categorical Data

Data that can be divided into specific groups or categories without any order.

Quantitative Data

Data that can be measured numerically, allowing for mathematical operations and statistical analysis.