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Heinlein groups stock has a required rate of return that exceeds its expected return. Which...

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Finance

Heinlein groups stock has a required rate of return that exceeds its expected return. Which of the following might be good investment strategies? More than one answer may be correct.

Purchase the stock

Short sell the stock

Sell the stock Buy call options on the stock

There is not enough information to solve this problem.

Vinge Incs stock is in equilibrium and the companys dividends are expected to grow at a constant rate of 7% each year. Which of the following statements are correct? More than one answer is possible.

The companys dividend yield is 7%.

Vinges stock price is expected to increase by 7% each year.

The expected rate of return on Vinges stock is 7%.

The capital gains yield of Vinges stock is 7%.

Vinges stock price should drop next year

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