Suppose stock A sells for $50 per share and pays dividends of $2 per share per year. Stock B sells for $100 per share and pays dividends of $4 per share per year. Through the process of arbitrage, we would expect the price of:
A. stock A to fall and/or the price of stock B to rise.
B. stock A to rise and/or the price of stock B to fall.
C. both stocks to rise or fall together.
D. neither stock to change.
D. neither stock to change.
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If government regulations make a certain job less dangerous, then we'd expect that the supply of labor for that job would
a. increase, which by itself would raise the wage for that job. b. increase, which by itself would reduce the wage for that job. c. decrease, which by itself would raise the wage for that job. d. decrease, which by itself would reduce the wage for that job.
Which of the following nations has experienced the highest average annual rate of growth of per capita real GDP since 1990?
A. United States B. Germany C. China D. India
As output rises, ________ will continue to fall.
A. average fixed costs B. average total costs C. marginal costs D. average variable costs
A simultaneous increase in both the demand for computers and the supply of computers must increase
a. the number of computers bought and sold. b. the price of computers. c. both the equilibrium price and quantity of computers. d. the shortage of computers in the market.