If markets are in equilibrium, which of the following conditions will exist?

A. Each stock's expected return should equal its realized return as seen by the marginal investor.
B. Each stock's expected return should equal its required return as seen by the marginal investor.
C. All stocks should have the same expected return as seen by the marginal investor.
D. The expected and required returns on stocks and bonds should be equal.
E. All stocks should have the same realized return during the coming year.


Answer: B

Business

You might also like to view...

When a liability is accrued, the account debited in the transaction is a stockholders' equity account

a. True b. False Indicate whether the statement is true or false

Business

Corporate credibility depends on corporate expertise, corporate trustworthiness, and corporate likability

Indicate whether the statement is true or false

Business

What are the strengths/advantages and weaknesses/disadvantages of using sales promotion in the promotional mix?

What will be an ideal response?

Business

What are some excesses of position classification systems?

What will be an ideal response?

Business