Which of the Following Does Not Affect the Discount Rate

question 43

Multiple Choice

Which of the following does not affect the discount rate in the dividend discount model?

• A) risk premium for stocks
• B) return on assets
• C) real risk free rate
• D) expected inflation rate

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Definitions:

Ritualistic Hand Washing

Compulsive and repetitive washing of hands, often associated with obsessive-compulsive disorder.

Show of Force

An act of displaying military or other power to deter or intimidate opponents or to demonstrate capabilities.

Panic

An intense, sudden onset of fear or anxiety, often with physical symptoms and a sense of impending doom.

Anxiolytic Medication

Drugs that are used to prevent or reduce anxiety, often by affecting neurotransmitter activity in the brain.