In the context of common stocks, stocks that trade at lower dividend yields relative to other...
In the context of common stocks, stocks that trade at lower dividend yields relative to other stocks have a __________ Macaulay's duration and tend to have _______ observed betas.
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A. shorter; higher
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B. shorter; lower
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C. longer; lower
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D. longer; higher
Homework Answers
Stocks that trade at lower dividend yields relative to other stocks have a longer Macaulay Duration and tend to have a higher beta.
Hence, Option D is the answer
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In the context of common stocks, stocks that trade at
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