Business, 03.12.2019 03:10 freddymoskali

12. stocks a and b have the following data. the market risk premium is 6.0% and the risk-free rate is 6.4%. assuming the stock market is efficient and the stocks are in equilibrium, which of the following statements is correct? a b beta 1.10 0.90 constant growth rate 7.00% 7.00% a. stock a must have a higher stock price than stock b. b. stock a must have a higher dividend yield than stock b. c. stock b's dividend yield equals its expected dividend growth rate. d. stock b must have the higher required return. e. stock b could have the higher expected return.

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