3010. In arbitrage pricing theory, higher required rate of return is usually paid on stock

higher market risk
higher dividend
lower dividend
lower market risk
✅ The correct answer is B.
In arbitrage pricing theory, higher required rate of return and higher dividend is usually paid on stock. The Arbitrage Pricing Theory (APT) is a theory of asset pricing that holds that an asset’s returns can be forecasted with the linear relationship of an asset’s expected returns and the macroeconomic factors that affect the asset’s risk.

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