The bird-in-the-hand argument espousing the importance of dividends or dividend relevance suggests that investors view current dividends as less risky than future dividends or capital gains.

Question

Quizplus · Accepted Answer

The bird-in-the-hand argument states that investors prefer current dividends over potential future dividends or capital gains because they are considered less risky. Therefore, the statement is true.

The Bird-In-The-Hand Argument Espousing the Importance of Dividends or Dividend