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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The belief that one's own culture or ethnic group is superior to others, often leading to discrimination or prejudice.

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