A Stock's Expected Return as Seen by the Marginal Investor

question 36

True/False

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.

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Definitions:

Red Price

There is no standard definition for this term in economics; it may be used informally to denote a specific pricing strategy or condition but lacks a general meaning.

Bubble Gum

A variety of gum that can be blown into a bubble from the mouth.

Ambrosia

In mythology, ambrosia is often considered the food or drink of the gods, granting longevity or immortality upon consumption.

Ambrosia

In classical mythology, the food of the gods, or in general usage, something extremely pleasing to taste or smell.