Which of the following statements is least accurate? A. The variance on a well-diversified portfolio is a function of systematic risk only. B. When market is inefficient or there is tax, shareholders' wealth is not affected by a company's choice between dividend and repurchase. C. Although dividend is taxable, there is a group of investors who prefer cash dividends over repurchase. D. Companies are reluctant to cut dividends as dividends tend to be sticky.
Which of the following statements is least accurate? A. The variance on a well-diversified portfolio is a function of systematic risk only. B. When market is inefficient or there is tax, shareholders' wealth is not affected by a company's choice between dividend and repurchase. C. Although dividend is taxable, there is a group of investors who prefer cash dividends over repurchase. D. Companies are reluctant to cut dividends as dividends tend to be sticky.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A2)
Which of the following statements is least accurate?
A. The variance on a well-diversified portfolio is a function of systematic risk only.
B. When market is inefficient or there is tax, shareholders' wealth is not affected by a company's choice between dividend and repurchase.
C. Although dividend is taxable, there is a group of investors who prefer cash dividends over repurchase.
D. Companies are reluctant to cut dividends as dividends tend to be sticky.
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