Other things held constant, for a given change in the required rate of return on a bond, the the time to maturity, the the bond price risk. A) longer; lower B) longer; higher C) shorter; higher. D) none of the above Which of the following statements is most CORRECT? A) If the stock market is efficient, small investors can still make a lot of money by buying IPO stocks on the first day once the stock begins trading. B) If the stock market is efficient, then the actual realized returns on all stocks will be equal to their expected rates of return. C) An implication of the stock market efficiency implies that you cannot make abnormal profits by purchasing a drug company's stock after hearing the company received a FDA approval for one of its products. D) If the stock market is efficient, all stocks will be equally risky. You want to go to a graduate school 3 years from now. You can save $5,000 per year and deposit in an investment account at the end of each year. If the interest rate is 9%, how much will you have 3 years from now? A) $18,349.15 B) $16,110.34 C) $16,390.50 D) $17,513.68 Question 31 (1 point) Waters Corporation's stock dividend is expected to be $2 a share (D1 = $2.00). The stock's required rate of return is 15% and the stock's dividend is expected to grow at the same constant rate of 5% forever. What is the expected price of the stock five years from now? A) $25.53 B) $28.45 C) $30.82 D) $23.26 mection 211 moint