What Can Be Expected to Happen When Stocks Having the Same

question 32

Multiple Choice

What can be expected to happen when stocks having the same expected risk do not have the same expected return?

• A) at least one of the stocks becomes temporarily mispriced
• B) this is a common occurrence indicating that one stock has more PVGO
• C) this cannot happen if the shares are traded in an auction market
• D) the expected risk levels will change until the expected returns are equal

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Definitions:

Communication Style

The manner in which an individual expresses or exchanges information with others.

Population Percent

A metric used to represent a portion or fraction of a whole population, typically expressed as a percentage.

Kinesthetic

Relating to the perception of movement, where the sensation is experienced through the movement of muscles, tendons, and joints.

Communication Style

Communication style pertains to the way an individual expresses themselves verbally and non-verbally, which can vary greatly among different people and contexts.