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There are two stocks, X and Y with equal price. X has greater expected rate of return. We can conclude that: Stock X must have
There are two stocks, X and Y with equal price. X has greater expected rate of return. We can conclude that:
Stock X must have a higher dividend yield than Stock Y.
In case that X has a lower dividend yield comparing to Y, so that X expected capital gains yield is greater than Stock Ys.
If X has a higher dividend yield than Y, then X expected capital gains yield must be lower than Stock Ys.
Y must have a higher dividend yield than Stock X.
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