Why the dividend policy can be considered irrelevant

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1. Explain why the dividend policy can be considered irrelevant to company value from the point of view of both an investor and a company, and critically discuss the importance of dividend policy.

2. Consider an equally weighted portfolio that contains 100 stocks. If the average volatility of these stocks is 50% and the average correlation between the stocks is 0.7, then the volatility of this equally weighted portfolio is closest to?

Reference no: EM131904265

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