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

question 25

Multiple Choice

For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then

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

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Definitions:

Open Racism

Direct and explicit expression of racist views and beliefs without any attempt to hide or disguise the prejudice.

Treaty of Versailles

The peace treaty that ended World War I, signed in 1919, which imposed heavy reparations and territorial losses on Germany, contributing to the conditions leading to World War II.

League of Nations

An international organization founded after World War I to promote peace, cooperation, and collective security among nations; a precursor to the United Nations.