THE EFFECT OF DIVIDEND POLICY ON STOCK PRICE …

THE RISK-RETURN RELATIONSHIP AND STOCK PRICES Benjamin Bachrach and Dan Galai* I. Introduction According to the current state of knowledge in finance, the expected rate of re? turn adjusted for risk is independent of the stock price. The basic proposition of the capital asset pricing model (CAPM) is that the expected rate of return for each secur? ................
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