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1. a. Differentiate between price weighted index and value weighted index giving examples. b. Based on the dividend-discount model, what do you think would happen
1. a. Differentiate between price weighted index and value weighted index giving examples.
b. Based on the dividend-discount model, what do you think would happen to stock prices if there were an increase in the perceived riskiness of bonds?
c. Use the dividend-discount model to explain why an increase in stock prices is often a good indication that the economy is expected to do well.
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