The required returns of Stocks X and Y are rX = 10% and rY = 12%. Which

Question:

The required returns of X and Y are rX = 10% and rY = 12%. Which of the following statements is correct?
a) If the market is in equilibrium, and if Stock Y has the lower expected yield, then it must have the higher expected growth rate.
b) If Stock Y and Stock X have the same yield, then Stock Y must have a lower expected capital gains yield than Stock X.
c) If Stock X and Stock Y have the same current and the same expected growth rate, then Stock Y must sell for a higher price.
d) The must sell for the same price.
e) Stock Y must have a higher yield than Stock X.
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