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.
i think the answer would be b
correct me if i am wrong
the rule of supply and demand says that if there is high demand for goods the price of said good goes up. now if the supply is more than the demand then price will plummet since there are too many items.
hope this have a nice day (:
the correct answer option is a. using resources in such a way as to maximize the production of goods and services.
the term efficiency is derived from the term 'efficient' which means , in the context of a machine or a system, achieving the maximum productivity with minimum expense or effort.
so accordingly, from the given answer options, a. using resources in such a way as to maximize the production of goods and services describes efficiency the best.