D. P. r, +g

Assuming that the stock price follows a geometric Brownian motion, is it a Markov process when the coefficient is not constant?

Is the market for all stocks equally efficient? Explain.

How to know what price target to buy a stock?

1. How does the binomial model account of volatility in the stock?

Apart from using PE ratio, what is another way of valuing the stock price? if we have the EPS, Share Price, Dividend Per Share, ROE and the discount rate (R).  And what are the assumptions and the limitations of this model? What can be said about the dividend growth model? Similarly what can be said about the capital asset pricing model?

Can small adjustments to a flow lead to large changes in a stock?

Par value of a stock refers to the ________.

What effect do increasing inflation expectations have on the required returns of investors in common stock?

How will the change in required return influence the price of a stock? How will the dividend growth rate influence the price of a stock?