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:

Trade

The exchange of goods, services, or both between two or more parties, either within a country or across international borders.

Total Surplus

The sum of consumer surplus and producer surplus in a market, representing the total benefit to society from trade.

Trade

The trading of goods, services, or both among two or more entities, within the same nation or across different countries.

Ugandan Producers

Individuals or companies involved in the creation or manufacturing of goods and services in Uganda.