Explain why investors demand higher expected rates of return

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Reference no: EM13964796

Part A: APA Format 250 Words please cite within writing and add references

If a financial institution is caught up in a financial scandal, would you expect its value to fall by more or less than the amount of any fines and settlement payments?

Part B: APA Format 250 Words please cite within writing and add references

In 250 words, respond to the following. "You say stock price equals the present value of future dividends? That's crazy! All the investors I know are looking for capital gains."

Part C: APA Format 250 Words please cite within writing and add references

In 250 words, explain why investors demand higher expected rates of return on stocks with more variable rates of return.

Reference no: EM13964796

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