Economics 2154A/B Study Guide - Behavioral Economics, Mutual Fund, Random Walk Hypothesis
24 Sep 2014
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Xyz announced that is not going to pay dividends next year. You decide that you would be satisfied to earn a 20 percent on the investment on this stock, thus, this stock is worth. ________ for you now: b) c) d) , general electric announces that it is going to cut its dividends by sh. 02 per share in the future. This, everything else remaining the same, will cause its current stock price to ________: increase b) decrease c) remain the same d) fluctuate, in the generalized dividend model, if the expected sales price is in the distant future. A) greater than b) equal to c) less than d) proportional to: the price earnings ratio (pe) is a measure of how much the market is willing to pay for of. 7. 3 the theory of rational expectations: economists have focused more attention on the formation of expectations in recent years.
