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:

Operating Data

Information related to the day-to-day functions of a business, which includes sales, production volumes, and inventory levels, used to support operational decision-making.

Sales

The total revenue generated from the sale of goods or services.

ROI

Return on Investment; a performance measure used to evaluate the efficiency or profitability of an investment relative to its cost.

Turnover

Turnover is a financial metric indicating the rate at which a company's inventory is sold and replaced over a specific period, or it can refer to the total sales volume.