For a Stock to Be in Equilibrium, That Is, for There

question 14

Multiple Choice

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then

• A) the past realized return must be equal to the expected return during the same period.
• B) the required return must equal the realized return in all periods.
• C) the expected return must be equal to both the required future return and the past realized return.
• D) the expected future returns must be equal to the required return.
• E) the expected future return must be less than the most recent past realized return.

---

Definitions:

External Authority

The influence or control exerted by an outside force or body, often seen in organizational or societal structures.

Neo-Freudian

Pertains to psychologists and theorists who accepted Freud's basic ideas but modified them to include social and cultural factors in personality development.

Karen Horney

A German psychoanalyst known for her theories on neurosis, personality, and psychoanalytic social theory, emphasizing the importance of social relationships.

Superiority Striving

The drive towards personal improvement and the desire to achieve superiority over others.