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

question 50

Multiple Choice

For a stock to be in equilibrium-that is,for there to be no long-term pressure for its price to change-the

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

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