The Common Stock of Pierson Enterprises Has Historically Had a High

question 36

Multiple Choice

The common stock of Pierson Enterprises has historically had a high dividend yield and is expected to continue to do so.As a result,the majority of its shareholders are individuals and entities that are seeking a regular source of cash income.Most of these shareholders pay either no taxes or a relatively low amount of taxes.The fact that most of these shareholders have similar characteristics is referred to by which one of the following terms?

• A)information content effect
• B)clientele effect
• C)efficient markets hypothesis
• D)distribution effect
• E)market reaction effect

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Definitions:

Unimodal

Refers to a distribution that has a single peak or mode.

Median

The middle value in a sorted list of numbers, effectively dividing the distribution into two equal halves.

Mean

In statistics, it refers to the average value in a data set, calculated by summing all the numbers and dividing by the count of these numbers.

IQR

Short for Interquartile Range, it measures the middle 50% of data points in a dataset, offering a glimpse into data spread.