Explain what is meant by risk drives expected return

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Reference no: EM132004110

1. Explain what is meant by “risk drives expected return”.

2. Tell Me Why Co. is expected to maintain a constant 4.22 percent growth rate in its dividends indefinitely. If the company has a dividend yield of 9.55 percent, what is the required return on the company’s stock?

Reference no: EM132004110

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