Stocks X and Y Have the Following Data

question 23

Multiple Choice

Stocks X and Y have the following data.Assuming the stock market is efficient and the stocks are in equilibrium,which of the following statements is CORRECT? ​

• A) Stock X has a higher dividend yield than Stock Y.
• B) Stock Y has a higher dividend yield than Stock X.
• C) One year from now,Stock X's price is expected to be higher than Stock Y's price.
• D) Stock X has the higher expected year-end dividend.
• E) Stock Y has a higher capital gains yield.

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Definitions:

Ratio Scale

A quantitative scale of measurement that has a true zero-point and units of equal intervals, allowing for the comparison of absolute magnitudes of numbers.

Interval Scale

A type of measurement scale that represents both the order of data points and the exact differences between them, but without a true zero point.

Histogram

A graphical representation using bars of various heights to show the distribution of data over a continuous interval or certain period of time.

Research Hypotheses

Proposed explanations or predictions that are based on limited evidence and can be tested through further investigation.