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

question 5

True/False

If a stock's expected return as seen by the marginal investor exceeds this investor's 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.

---

Definitions:

Irrational Fear

A fear that is disproportionate to the threat or danger it is associated with, often resulting from psychological factors.

Paying Attention

The act of concentrating or focusing one's mental energies on a specific object, task, or subject.

Present Moment

The current point in time, emphasizing focus and mindfulness on the immediate situation or experience without distraction.

Quiet The Mind

Refers to practices or techniques aimed at reducing mental chatter or noise, typically to achieve greater peace, focus, or mindfulness.