Stocks a and B Have the Following Data

question 59

Multiple Choice

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

• A) These two stocks should have the same price.
• B) These two stocks must have the same dividend yield.
• C) These two stocks should have the same expected return.
• D) These two stocks must have the same expected capital gains yield.
• E) These two stocks must have the same expected year-end dividend.

Understand the concepts of measures of central tendency (mean, median, mode) and their differences.

Understand the concepts of measures of dispersion (range, variance, standard deviation) and how they are used to describe data variability.

Recognize different statistical terms and their definitions (e.g., degrees of freedom, frequencies, z-score).

Know the difference between descriptive and inferential statistics.

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Definitions:

Credit Policy

A set of guidelines that a company uses to determine the credit terms and conditions for its customers.

Economic Order Quantity

is a formula used by businesses to determine the optimal amount of inventory to order at one time, aiming to minimize holding and ordering costs.

Variable Cost

Costs that vary directly with the level of production or service delivery.

Carrying Cost

Expenses associated with holding or storing inventory, including insurance, storage, and opportunity costs of invested capital.