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What would be the effect of the following changes on the market price of a company's stock, all other things the same? a . Investors
What would be the effect of the following changes on the market price of a company's stock, all other things the same? a Investors demand a higher required rate of return for stocks in general. b The covariance between the company's rate of return and that for the market decreases. c The standard deviation of the probability distribution of rates of return for the company's stock increases. d Market expectations of the growth of future earnings and dividends of the company are revised downward.
What would be the effect of the following changes on the market price of a company's stock, all other things the same?
a Investors demand a higher required rate of return for stocks in general.
b The covariance between the company's rate of return and that for the market decreases.
c The standard deviation of the probability distribution of rates of return for the company's stock increases.
d Market expectations of the growth of future earnings and dividends of the company are revised downward.
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