Which One of the Following Will Automatically Occur If All

question 43

Multiple Choice

Which one of the following will automatically occur if all investors are rational?

• A)All stock prices will be equal.
• B)Equivalent risk assets will have equal expected rates of return.
• C)All investors will earn the market rate of return.
• D)All investors will earn the same rate of return.
• E)The riskier an asset, the higher its market price will be.