As Shares Have No Maturity Date, Their Price Can Be

question 54

True/False

As shares have no maturity date, their price can be estimated as the present value of the perpetuity formed by their expected dividend payments.

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Definitions:

Correlation

The extent to which two factors vary together, and thus of how well either factor predicts the other. The correlation coefficient is the mathematical expression of the relationship, ranging from −1 to +1.

Dependent Variables

In an experiment, these are the variables that are tested and measured; they depend on the independent variable.

Random Samples

Random samples are a method of selecting a subset of individuals from a population in which each individual has an equal chance of being chosen, used to ensure generalizability of results.

Naturalistic Observation

Observing and recording behavior in naturally occurring situations without trying to manipulate and control the situation.