According to the financial asset arbitrage equation, all else equal, a rise in the capital gain for a stock implies:
A) a decline in the user cost of capital.
B) a rise in the dividend.
C) a rise in the real interest rate.
D) that the marginal product of capital stays constant.
E) a fall in the price of the stock.

Question

Quizplus · Accepted Answer

The Answer of According to the financial asset arbitrage equation, all else equal, a rise in the capital gain for a stock implies:
A) a decline in the user cost of capital.
B) a rise in the dividend.
C) a rise in the real interest rate.
D) that the marginal product of capital stays constant.
E) a fall in the price of the stock.

According to the Financial Asset Arbitrage Equation, All Else Equal