Which of the Following Statements Is False

question 66

Multiple Choice

Which of the following statements is false?

• A) An investor will be willing to pay up to the point at which the current price of a share of stock equals the present value of the expected future dividends of an expected future sale price.
• B) The expected total return of a stock should equal the expected return of other investments available in the market with equivalent risk.
• C) The total amount received in dividends and from selling the stock will depend on the investor's investment horizon.
• D) If the current stock price were greater than P₀ = , it would be a positive NPV investment, and we would expect investors to rush in and buy it, driving up the stock's price.

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Definitions:

Basic Psychological Needs

Fundamental requirements for psychological well-being, including autonomy, competence, and relatedness.

Autonomous

Having the ability or privilege to make one's own decisions or actions independent of external influence or control.

Controlled

A state or condition where actions, processes, or mechanisms are directed or managed by specific guidelines or individuals.

Autonomy Support

The degree to which an organization or leader encourages and facilitates employees' sense of choice and volition in their work.