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When a Great Many Simple Random Samples of Size N

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When a great many simple random samples of size n are drawn from a population that is normally distributed,the sampling distribution of the sample mean is normal regardless of the sample size n.


Definitions:

Expected Growth Rate

The projected annual rate at which an investment or a company's earnings are expected to grow.

Constant Growth Model

A model used to estimate the value of a stock assuming that dividends grow at a constant rate indefinitely.

Required Return

The basic yearly rate of return essential for inducing companies or individuals to invest money into a specific project or security.

Annual Dividend

The total dividend payment a shareholder will receive from a company in a single year, per share owned.

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