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changes in interest rates

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How do changes in interest rates influence the values of stocks? Would the dividend discount and economic top-down analysis play a role? Discuss in your answer.

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Changes in interest rates are studied.

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As interest rates increase the required rate of return from the stock increases. Remember that required rate of return from stock is
=Risk free interest rate + beta*risk premium
As interest rates go up, the required return from the stock also go up. The increase in required rate of return will mean that the ...

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