A Stock to Be in Equilibrium, Two Conditions Are Necessary

question 49

True/False

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:

Enlightenment Thinking

A philosophical movement of the 18th century emphasizing reason, individualism, and skepticism towards traditional doctrines.

Birth of Sociology

The emergence of sociology as a distinct discipline in the 19th century, aiming to understand and explain societal structures, processes, and changes.

Class Consciousness

The awareness of one's place in a system of social classes, especially as it relates to the struggle against perceived injustices and exploitation within that system.

Quality of Mind

Mills’s term for the ability to view personal circumstance within a social context.