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.

---

Definitions:

Breast Cancer

A disease characterized by the abnormal growth of cells within the breast tissue.

Cardiovascular Disease

A class of diseases that involve the heart or blood vessels, such as coronary artery disease, hypertension, and stroke.

Unintentional Injury

Injuries resulting from events that were not intended to cause harm, such as accidents or mishaps.

Survival Rates

The percentage of individuals in a specified group who are alive for a certain period of time after diagnosis or treatment of a condition or disease.