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Which of the following statements about stocks is FALSE? a. There are two potential sources of cash flows from owning a stock. b. Transaction costs
Which of the following statements about stocks is FALSE? a. There are two potential sources of cash flows from owning a stock. b. Transaction costs can lead to a situation where the law of on price does not hold for stocks. c. Since future cash flows from stock are known with certainty, we can discount them using the risk-free interest rate. d. An investor might generate cash by choosing to sell the shares at some future date.
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