Graph price path of clark corporation capital common stock

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Suppose you know with certainty that the Clark Capital Corporation will pay a dividend of $10 per share on ever January 1 forever. The continuously compounded risk-free rate is 5% (also forever).

            a. Graph the price path of Clark Corporation Capital common stock over time.

            b. Is this (highly artificial) example a random walk? A matingale? A submartingale? Why?

Reference no: EM13475591

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