Question 23 4 pts Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equlibrum, which of the following statements is CORRECT? AB $25 $25 Price Expected growth constant 10% 5% Recured return 15% 15% Stock As expected dividend 0111is only all that of Stock Stock A has a higher didend yield than Stock Currently the two love the same price, but over time Stock B's rice will pass that OTA Since Stock A's growth rostwice that of Stock Stock is future dividends willways be twice as high as Stock Bs. The two stocks should not seat the same price. If their prices are equal the sequlibrium musta Question 11 4 pts The risk-free rate is 6%; Stock A has a beta of 1.0; Stock B has a beta of 2.0; and the market risk premium, TM - TRF, is positive. Which of the following statements is CORRECT? If the risk-free rate increases but the market risk premium stays unchanged. Stock B's required return will increase by more than Stock A's. Stock B's required rate of return is twice that of Stock A. of Stock A's required return is 11%, then the market risk premium is 5%. If Stock B's required return is 11%, then the market risk premium is 5% If the risk-free rate remains constant but the market risk premium increases, Stock A's required return will increase by more than Stock B's