Which One of the Following Will Automatically Occur If All

question 43

Multiple Choice

Which one of the following will automatically occur if all investors are rational?

• A)All stock prices will be equal.
• B)Equivalent risk assets will have equal expected rates of return.
• C)All investors will earn the market rate of return.
• D)All investors will earn the same rate of return.
• E)The riskier an asset, the higher its market price will be.

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Definitions:

Adaptors

Nonverbal behaviors or actions often performed unconsciously in response to stress or discomfort, such as fidgeting or adjusting clothing.

Perception Checking

is a communication strategy used to verify the accuracy of one's interpretations of another person's behavior or communication, reducing misunderstandings.

Interpersonal Communication

A distinctive, transactional form of human communication involving mutual influence, usually for the purpose of managing relationships.

Student Union

A student organization present in many universities and colleges dedicated to representing the interests of the student body, often providing services, support, and facilitating activities.