Stocks a and B Have the Following Data

question 5

Multiple Choice

Stocks A and B have the following data.Assuming the stock market is efficient and the stocks are in equilibrium,which of the following statements is CORRECT? ​

• A)These two stocks should have the same price.
• B)These two stocks must have the same dividend yield.
• C)These two stocks should have the same expected return.
• D)These two stocks must have the same expected capital gains yield.
• E)These two stocks must have the same expected year-end dividend.

---

Definitions:

Paradoxical Sleep

Another term for REM (Rapid Eye Movement) sleep, a phase of sleep during which the brain is active and dreams occur, but the body remains paralyzed.

Brain Weight

The mass of the brain, which in adult humans averages about 1.4 kilograms.

Adult's Brain

A mature human brain that has reached full development, typically by the mid-20s, characterized by complex cognitive capacities.

Newborn's Brain

Refers to the brain of a newborn child, characterized by rapid development and high plasticity during the first few years of life.