If a Stock's Expected Return as Seen by the Marginal

question 68

True/False

If a stock's expected return as seen by the marginal investor exceeds his or her required return,then the investor will buy the stock until its price has risen enough to bring the expected return down to equal the required return.

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Definitions:

Prospect's Response

The reactions or replies given by a potential customer during a sales interaction, which can range from interest to objection.

SPIN Approach

A sales technique based on four types of questions—Situation, Problem, Implication, Need-payoff—aimed at guiding a potential customer through the decision-making process.

Need-Satisfaction

The process of meeting or fulfilling a requirement or desire of a customer through products or services.

Situation Question

A question that seeks to uncover specific circumstances or context about a problem or scenario.