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A student has identified the CAPM and DDM as important formulas for finding a stock's...

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Finance

A student has identified the CAPM and DDM as important formulas for finding a stock's required return and price, respectively. other things remaining equal, a surprise change in which of the following statistics will increase the stock's price?

a stock's price is likely to rise when there's a surprise select one:

a. rise in the risk free rate

b. rise in the market risk premium

c. fall in the stock's beta

d. fall in the stock's expected dividend

e. fall in the stock's expected dividend growth rate

Over-priced individual stocks plot:

a. Above the security market line (SML)

b. On the SML

c. Below the SML

d. Above the capital market line (CML)

e. On the CML

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