If the Expected Return Is Above the Required Return on an Asset

question 53

Multiple Choice

If the expected return is above the required return on an asset, rational investors will

• A) sell the asset, which will drive the price up and cause the expected return to reach the level of the required return.
• B) sell the asset, which will drive the price down and cause the expected return to reach the level of the required return.
• C) buy the asset, which will drive the price up and cause the expected return to reach the level of the required return.
• D) sell the asset, since the price is expected to decrease.

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Definitions:

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A scheduling system that allows patients to receive healthcare services without an appointment during specified times.

Clustering

The process of grouping a set of objects in such a way that objects in the same group (called a cluster) are more similar to each other than to those in other groups.

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A pre-employment or diagnostic strategy involving a series of questions conducted over the phone to assess suitability or health status.

Paraphrase

To restate text or speech using different words, especially to achieve greater clarity.