James Is Willing to Settle for a 10% Rate of Return

question 38

Multiple Choice

James is willing to settle for a 10% rate of return on EG shares at a time when investors, on average, are requiring an 11% rate of return on the same shares. Which of the following will happen?

• A) James will be have to pay more for the shares than he was willing to pay.
• B) James will be happy to buy the shares for less than he was willing to pay.
• C) Investors with different required rates of return will pay different prices for the shares.
• D) James will not be able to buy the shares unless the price changes.

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Definitions:

Stimulant

Substances that increase alertness, attention, and energy by accelerating the activity of the central nervous system.

DSM-5

The fifth edition of the American Psychiatric Association's classification and diagnostic tool for mental health professionals.

Substance Use

The consumption of drugs or alcohol, not necessarily implying abuse, but focusing on the act of using these substances.

Substance Withdrawal

Experience of clinically significant distress in social, occupational, or other areas of functioning due to the cessation or reduction of substance use.