401K Financial Planning

lamvpink asked:

Korean stock market is very connected with US stock market. Due to subprime mortgage loan, Korean stock market got damaged a lot. Since subprime mortgage loan, I have been interested in this for so long time. Please tell me how Korean stock market stay independent from US stock market.


Question posted courtesy of: Javier

Benson K asked:

Stock A has a required return of 10% and a price of $25, and its dividend is expected to grow at a constant rate of 7% per year. Stock B has a required return of 12% and a price of $40, and its dividend is expected to grow at a constant rate of 9% per year. Which of the following statements is CORRECT?

a.If the stock market were efficient, these two stocks would have the same price.
b.The two stocks have the same dividend yield.
c.If the stock market were efficient, these two stocks would have the same expected return.
d.The two stocks have the same expected capital gains yield.
e.The two stocks have the same expected year-end dividend.


Question posted courtesy of: Jose