The Portfolio Expected Return of Two Investments

question 32

Multiple Choice

The portfolio expected return of two investments

• A) will be higher when the covariance is negative.
• B) will be higher when the covariance is zero.
• C) will be higher when the covariance is positive.
• D) does not depend on the covariance.

Understand the fundamentals of dividend growth models.

Apply the dividend growth model to calculate the value of a stock.

Calculate and interpret the required rate of return on a stock.

Analyze the impact of dividend growth rates on stock valuations.

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