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Author Question: In a short sale, your broker must borrow the shares you sell. Indicate whether the statement is ... (Read 56 times)

meagbuch

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In a short sale, your broker must borrow the shares you sell.
 
  Indicate whether the statement is true or false

Question 2

If two firms have the same current dividend and the same expected growth rate, their stocks must
  sell at the same current price or else the market will not be in equilibrium.
 
  A) false, because the required return could be different
  B) true, because we are using a dividend valuation model
  C) true, if markets are semi-strong form efficient
  D) true, if investors are risk-averse


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paavo

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meagbuch

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Reply 2 on: Jul 10, 2018
Great answer, keep it coming :)


carlsona147

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Reply 3 on: Yesterday
Thanks for the timely response, appreciate it

 

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