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  3. Study Set
    The Economics of Money Banking Study Set 2
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    Exam 7: The Stock Market, the Theory of Rational Expectations, and the Efficient Market Hypothesis
  5. Question
    The Analysts Predict That the Price of Corporation's XYZ Stock
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The Analysts Predict That the Price of Corporation's XYZ Stock

Question 3

Question 3

Multiple Choice

The analysts predict that the price of corporation's XYZ stock one year from now will be $22.XYZ announced that is not going to pay dividends next year.You decide that you would be satisfied to earn a 10 percent on the investment on this stock,thus,this stock is worth ________ for you now.


A) $20
B) $22
C) $24
D) $18

Correct Answer:

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