Question: 8. Consider a stock in which dividends will grow at a constant rate of g every year, and the payout ratio stays unchanged. The stock's
8. Consider a stock in which dividends will grow at a constant rate of g every year, and the payout ratio stays unchanged. The stock's price-earnings ratio increases with a rise in g.
Group of answer choices
True
False
9. According to the Capital Asset Pricing Model, the required return on a stock is determined by its amount of risk measured by the standard deviation of its returns.
Group of answer choices
True
False
10. An analyst wants to measure the beta of Apple stock using data on its monthly returns. In a scatter plot where the X-axis is the return on Apple stock, and the Y-axis is the market portfolio return, the slope of the linear trend line is the beta.
Group of answer choices
True
False
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