For a Stock to Be in Equilibrium,two Conditions Are Necessary

question 42

True/False

For 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 his or her required return.

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Definitions:

Behavior Modification

The use of learning techniques to change or modify problematic behaviors by reinforcing desirable behaviors and eliminating unwanted ones.

Counterconditioning Techniques

Methods used in behavior therapy to substitute a new response for a maladaptive one through conditioning.

Functional Behavioral Assessments

Evaluative processes that identify specific behaviors, their triggers, and consequences to plan effective interventions.

Desensitization Studies

Research into methods for reducing or eliminating negative or phobic reactions to specific stimuli by gradual exposure or counterconditioning.