(9A) for a Stock to Be in Equilibrium, Two Conditions

question 10

True/False

(9A). For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as seen by the marginal investor and (2) the expected return as seen by the marginal investor must equal this investor's required return.

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Definitions:

Constructive Resistance

Opposition or pushback that is aimed at achieving positive change or improvements.

Autonomy

The degree to which a job provides an employee with the discretion and independence to schedule their work and determine how it is done.

Participation

The action of taking part in something or becoming involved in an activity or event.

Operative

An operative is a worker, especially skilled in manual, clerical, or administrative work, often employed within the operations of a business or organization.