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Which of the following is / are assumption behind the realized yield approach?

A. The yield earned by investors has been, on average, in conformity with their expectations

B. The dividends will continue growing at a constant rate forever

C. The market price will continue growing at a constant rate forever

D. Both a and b

Answer: Option D

Solution(By Examveda Team)

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.

This Question Belongs to Commerce >> Financial Management

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