Difference between sterilized and nonsterilized intervention

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1. What is the difference between sterilized and nonsterilized intervention?

2. The of Party Time, Inc. just paid a dividend of $3.5 per share (D0). Analysts expect its dividend to grow at 8% per year for the next three years and then 4% per year thereafter. If the required rate of return on the stock is 22%, what is the current value of the stock?

$14.78.

$22.30.

$25.98.

$40.38.

$33.74.

$23.31.

2. Which of the following is false when markets are semistrong-form efficient 

- Investors cannot expect to earn positive risk-adjusted returns.

- It is pointless to time the purchase or sale of the firm’s securities.

- Private information has no predictive power in respect to market prices.

-The best forecast of future price is current price adjusted for trend.

Reference no: EM132005956

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