Q829
In expected rate of return for constant growth, stock price must grow according to an expected rate and
A.
at same price
AnswerB.
at different price
C.
at yielded price
D.
at buying price
Answer: Option A
Solution
Answer: Option A
Solution:
In expected rate of return for constant growth, stock price must grow according to an expected rate and at same price. The expected return is the profit or loss an investor anticipates on an investment that has known or anticipated rates of return (RoR).