Stocks a and B Have the Same Price and Are

question 73

Multiple Choice

Stocks A and B have the same price and are in equilibrium,but Stock A has the higher required rate of return.Which of the following statements is CORRECT?

• A)If Stock A has a lower dividend yield than Stock B, its expected capital gains yield must be higher than Stock B's.
• B)Stock B must have a higher dividend yield than Stock A.
• C)Stock A must have a higher dividend yield than Stock B.
• D)If Stock A has a higher dividend yield than Stock B, its expected capital gains yield must be lower than Stock B's.
• E)Stock A must have both a higher dividend yield and a higher capital gains yield than Stock B.

---

Definitions:

Autism Spectrum Disorder

A range of neurodevelopmental conditions characterized by challenges with social skills, repetitive behaviors, speech, and nonverbal communication.

Medicaid-insured

A status denoting individuals who are covered by Medicaid, a government-funded program in the United States that provides health insurance to people with low income.

Non-Hispanic White

An ethnic or racial category in the United States Census referring to people who are not of Hispanic or Latino origin and identify as White.

African Americans

Individuals of African descent living in the United States, often with a historical background tied to slavery and civil rights struggles.