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Which of the Following Statements Is FALSE

Question 15

Multiple Choice

Which of the following statements is FALSE?


A) An investor will be willing to pay up to the point at which the current price of a share of stock equals the present value of the expected future dividends and the expected future sale price.
B) The expected total return of a stock should equal the expected return of other investments available in the market with equivalent risk.
C) The total amount received in dividends and from selling the stock will depend on the investor's investment horizon.
D) If the current stock price were greater than P0 = Which of the following statements is FALSE? A) An investor will be willing to pay up to the point at which the current price of a share of stock equals the present value of the expected future dividends and the expected future sale price. B) The expected total return of a stock should equal the expected return of other investments available in the market with equivalent risk. C) The total amount received in dividends and from selling the stock will depend on the investor's investment horizon. D) If the current stock price were greater than P0 =   ,it would be a positive NPV investment,and we would expect investors to rush in and buy it,driving up the stock's price. ,it would be a positive NPV investment,and we would expect investors to rush in and buy it,driving up the stock's price.

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