6) In order for any dividend valuation model to reflect a valid stock price for a company

A. The dividend growth rate must remain constant

B. The company must pay dividends

C. The required rate of return (discount rate) must remain constant

D. More than one of the above

7) The risk of holding stocks is measured by the:

A. Likelihood of price jumps

B. Volaliity and investment time horizon

C. Standard deviation of the expected return and beta

D. Macro-economic variable

8) The P/E ratio approach to stock valuation is based on:

A. A constant yearly range of P/E ratios and an earnings forecast derived from historial growth patterns and market projections

B. The average yearly P/E ratio relative to the market, a yearly range of P/E ratios, and earnings based on an assumed constant growth rate

C. An increasing yearly range of P/E ratios and an earnings forecast based on the EPS of previous years

D.None of the above

9) Which of the following is NOT a characteristic of a growth company?

A. A relatively high average expenditure on research and development

B. Growth stocks always outperform the overall market indexes

C. Consistently stable and high profit margins

D. All of the above are characteristics