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:

Reciprocal Determinism

A concept in psychology that suggests individual behavior, personal factors, and the environment continually interact and influence each other.

External Locus

A belief system where individuals perceive outcomes in their life as resulting from forces outside their control.

Control

The ability to control or guide how people act or the direction in which things happen.

Behavior Modification

The use of empirically demonstrated behavior change techniques to improve behaviors, such as reinforcing desirable behaviors and reducing unwanted ones.