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which of the following is FALSE ? (Note: fractile 1 in the paper represents high

ID: 2708249 • Letter: W

Question

which of the following is FALSE? (Note: fractile 1 in the paper represents high dividend yield stocks and fractile 5 represents low dividend yield stocks.) a. High dividend yield stocks have lower risk, as defined by standard deviation and beta, than low dividend yield stocks. b. High dividend yield stocks outperform low dividend yield stocks. c. High dividend yield stocks outperform low dividend yield stocks in every area of the market including in growth sectors. d. High dividend yield stocks outperform the overall universe of stocks over 3-month, 6-month, 12-month, 24-month, and 36-month holding periods. e. High dividend yield stocks have a higher probability of outperforming the overall universe of stocks during up markets (i.e. positive return markets) than during down markets (i.e. negative return markets). f. High dividend yield stocks which are also low payout stocks have even better returns than the average return of high yield stocks. which of the following is FALSE? (Note: fractile 1 in the paper represents high dividend yield stocks and fractile 5 represents low dividend yield stocks.) High dividend yield stocks have lower risk, as defined by standard deviation and beta, than low dividend yield stocks. High dividend yield stocks outperform low dividend yield stocks. High dividend yield stocks outperform low dividend yield stocks in every area of the market including in growth sectors. High dividend yield stocks outperform the overall universe of stocks over 3-month, 6-month, 12-month, 24-month, and 36-month holding periods. High dividend yield stocks have a higher probability of outperforming the overall universe of stocks during up markets (i.e. positive return markets) than during down markets (i.e. negative return markets). High dividend yield stocks which are also low payout stocks have even better returns than the average return of high yield stocks.

Explanation / Answer

e. High dividend yield stocks have a higher probability of outperforming the overall universe of stocks during up markets (i.e. positive return markets) than during down markets (i.e. negative return markets).