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Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements
Stocks A and B have the following data. Assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is CORRECT? Required return Market price Expected growth A 10% $25 7% B 12% $40 9% O a. These two stocks should have the same price. O b. These two stocks should have the same expected return. O C. These two stocks must have the same dividend yield. O d. These two stocks must have the same expected year-end dividend. e. These two stocks should have the same expected capital gains yield. Time left 1:40:37
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