When we move from assuming no dividends to assuming a constant dividend yield, which of the following is true for a Cox, Ross, Rubinstein tree?

A. The parameters u and p change
B. p changes but u does not
C. u changes but p does not
D. Neither p nor u changes

B

The formula for u does not change but the formula for p does change.

Business

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An unproven statement or proposition about a factor or phenomenon that is of interest to the researcher is called a theory

Indicate whether the statement is true or false

Business

A supermarket places its store brand of blackberry jam priced at $5 per jar in the fruit preserves aisle, alongside the jam jars of a better known brand—whose products are priced at $8 apiece

Store managers reason that customers are more likely to choose the store brand instead of the better-known brand when they realize the price difference. What price adjustment strategy is evident in the supermarket's reasoning? A) by-product pricing B) product bundle pricing C) captive product pricing D) psychological pricing E) seasonal pricing

Business