The Market for a Stock Is Said to Be in Equilibrium

question 50

Multiple Choice

The market for a stock is said to be in equilibrium when the _____. 

• A)expected return on the stock is equal to its required return
• B)expected return on the stock is equal to the risk-free rate of return
• C)expected return on the stock is equal to the market risk premium
• D)expected return on the stock is equal to the market return
• E)expected return on the stock is equal to its historical return