(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:

Kinsey's Work

Refers to the research conducted by Alfred Kinsey and his colleagues on human sexual behavior, famously published in the "Kinsey Reports."

Moral Breakdown

A situation where individuals or society fail to uphold ethical values, often leading to chaos or conflict.

Random Sample

A portion of a larger group collected in an unbiased way.

Inferences

The process of drawing logical conclusions from available evidence or premises.