Question: Suppose all investments offered the same expected return before tax. Consider two equally risky shares, Hi and Lo. Hi shares pay a generous dividend and

Suppose all investments offered the same before tax. Consider two equally risky shares, Hi and Lo. Hi shares pay a generous and offer low expected capital gains. Lo shares pay low dividends and offer high expected capital gains. Which of the following investors would prefer the Lo shares? Which would prefer the Hi shares? Which wouldn't care? Explain. Assume that any stock purchased will be sold after one year.
a. A pension fund
b. An individual
c. A

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