Assume That a Time Series Plot Takes the Form of That

question 53

Multiple Choice

Assume that a time series plot takes the form of that shown in the following graph: Given this plot,which of the following models would likely give the best fit?

• A) = + t
• B) = + t+ +
• C) = + t+
• D) = + t+ + +

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Definitions:

Dividend

A dividend is a portion of a company's earnings that is paid to shareholders, usually on a regular basis.

Stock Price

The current price at which a share of a company's stock can be bought or sold in a financial market.

Dividend Yield

A ratio in finance that reveals the comparison between a company's yearly dividend distribution and its share price.

Required Return

Required Return is the minimum annual percentage earned by an investment that will induce individuals or companies to put their money into a particular security or project.