The yield earned by investors has been, on average, in conformity with their expectations
The dividends will continue growing at a constant rate forever
The market price will continue growing at a constant rate forever
Both a and b
✅ The correct answer is D.
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.
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.