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:

Relationship

The way in which two or more concepts, objects, or people are connected, or the state of being connected.

Key Supplier

A pivotal supplier crucial to the supply chain for its materials, services, or products, often due to their quality, reliability, or unique offerings.

Bidding Process

The procedure by which companies submit proposals or bids to win contracts, often used for projects, procurement, or services.

Project Champion

A person who passionately supports, promotes, and ensures the success of a project, often from a position of influence within the organization.