If Markets Are in Equilibrium,which of the Following Conditions Will

question 1

Multiple Choice

If markets are in equilibrium,which of the following conditions will exist?

• A) Each stock's expected return should equal its realized return as seen by the marginal investor.
• B) Each stock's expected return should equal its required return as seen by the marginal investor.
• C) All stocks should have the same expected return as seen by the marginal investor.
• D) The expected and required returns on stocks and bonds should be equal.
• E) All stocks should have the same realized return during the coming year.

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Definitions:

Seasonal Affective Disorder (SAD)

Disorder identified by a 2-year period in which a person experiences major depression during winter months and then recovers fully during the summer; some people with this disorder also experience mild mania during summer months.

Major Depressive Episodes

Periods characterized by severe depression symptoms such as deep sadness, loss of interest in activities, and other physical and cognitive impairments, significantly impacting one's daily life.

Psychosocial Events

Events that involve both psychological and social aspects, significantly impacting an individual's mental health and social functioning.

Cognitive Disorder

A class of psychological disorders that mainly influence abilities related to learning, memory, perception, and solving problems.