If Markets Are in Equilibrium,which of the Following Will Occur

question 64

Multiple Choice

If markets are in equilibrium,which of the following will occur?

• A)Each stock's expected return should equal its realized return as seen by the marginal investor.
• B)Each stock's expected return should equal its required return as seen by the marginal investor.
• C)All stocks should have the same expected return as seen by the marginal investor.
• D)The expected and required returns on stocks and bonds should be equal.

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Definitions:

Right To Left Associativity

The order in which operators of the same precedence level are evaluated, from right to left, in some programming languages.

Conditional Statement

A programming statement that executes a block of code based on whether a specified condition evaluates to true or false.

Compound Statement

A series of statements enclosed by braces that are executed sequentially in programming.

Compile

The process of converting source code written in a high-level programming language into machine code that can be executed by a computer.