Fundamental Relationship between Stock Prices and Interest Rates

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Question

Consider the dividend discount model, the capital asset pricing model, the arbitrage pricing model and the firm valuation model.  If these accurately portray the intrinsic values of stock prices and stock returns, then what is the corresponding fundamental relationship between stock prices and interest rates?  Explain your answers.

Summary

This question belongs to finance and discusses about fundamental relationship between stock prices and interest rates.

Total word count: 216

 

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