If a stock's expected return as seen by the marginal investor exceeds this investor's required return, then the investor will buy the stock until its price has risen enough to bring the expected return down to equal the required return.

Answer the following statement true (T) or false (F)


True

Business

You might also like to view...

In the context of the DIKW hierarchy, knowledge is uniquely a human characteristic.

Answer the following statement true (T) or false (F)

Business

Briefly explain the Domain Name System (DNS)

What will be an ideal response?

Business

A sample of typical undergraduate students is very likely to have a range of GPAs from 0.0 to 4.0, whereas graduate students are often required to have good grades (e.g., from 3.0 to 4.0). Please explain what influence these two different ranges of GPA would have on any correlations calculated on these two separate groups of students.

What will be an ideal response?

Business

During the current year, Martin purchases undeveloped land as an investment. Martin intends to rent the land as pastureland and hopefully sell it later for a profit. In the current year, Martin receives no rent but he does pay taxes of $2,800, mortgage interest of $900 and liability insurance of $500. How much of these expenses can Martin deduct (before any limitations) on his current tax return?

A. $1,400 B. $4,200 C. $3,700 D. $0

Business