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Which of the Following Statements About a Share with a Declining

Question 15

Multiple Choice

Which of the following statements about a share with a declining fundamental value is correct?


A) A share with declining fundamental value is valueless at the end of the trading period.
B) A declining fundamental value is a way of approximating a share that is long or infinitely lived.
C) A declining fundamental value implies that the time-path of expected dividends can be represented by a horizontal straight line.
D) A declining fundamental value implies that this type of share will never display asset bubbles that are often observed with a flat fundamental value.

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