If the Expected Rate of Return for a Particular Stock,as

question 88

True/False

If the expected rate of return for a particular stock,as seen by the marginal investor,exceeds its required rate of return,we should soon observe an increase in demand for the stock,and the price will likely increase until a price is established that equates the expected return with the required return.The sooner this equilibrium is reached,the more efficient the market is judged to be.

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Definitions:

Other Party

In legal or contractual language, this term refers to an entity or person aside from the one being directly addressed or previously mentioned.

Duress

A scenario in which an individual engages in an action due to being subjected to force, intimidation, or other forms of coercion.

Coercion

The act of compelling a party to act in an involuntary manner by use of threats, force, or pressure.

Contract Force

The legal binding power of a contract that obliges the parties involved to fulfill their respective duties as outlined.