TeSelle, Garrett H.2009-12-152009-12-151995-09TeSelle, G.H., (1995), "Stock Price Volatility Tests of N arrow and Broad Dividends: A Closer Examination of the Results of Ackert and Smith", Discussion Paper No. 282, Center for Economic Research, Department of Economics, University of Minnesota.https://hdl.handle.net/11299/55737Ackert and Smith (1993) suggest that volatility tests of stock prices should be based on a more inclusive definition of dividends than has actually been used in past studies. They perform a West Test using such a dividend definition, and conclude that stock prices are not excessively volatile relative to these dividends. This paper considers their work on two bases: First, it argues that in most cases the expanded dividend definition would not be expected to lead to volatility conclusions that differ from those reached under the narrower definition; second, it presents evidence that Ackert and Smith's empirical results may have been induced by unrecognized test bias created by non-stationarities in their data.en-USWorking Paper