Q269
Which of the following is / are assumption behind the realized yield approach?
A.
The yield earned by investors has been, on average, in conformity with their expectations
B.
The dividends will continue growing at a constant rate forever
C.
The market price will continue growing at a constant rate forever
D.
Both a and b
AnswerAnswer: Option D
Solution
Answer: Option D
Solution:
The yield earned by investors has been, on average, in conformity with their expectations. The dividends will continue growing at a constant rate forever are assumption behind the realized yield approach.