For Markets to Be in Equilibrium,that Is,for There to Be

question 38

Multiple Choice

For markets to be in equilibrium,that is,for there to be no strong pressure for prices to depart from their current levels,

• A)The expected rate of return must be equal to the required rate of return; that is, .
• B)The past realized rate of return must be equal to the expected future rate of return; that is, .
• C)The required rate of return must equal the past realized rate of return; that is, .
• D)All three of the above statements must hold for equilibrium to exist; that is, .
• E)None of these statements is correct.

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Definitions:

Dura Mater

The tough outermost membrane that surrounds the brain and spinal cord, offering protection.

Subarachnoid Space

The interval between the arachnoid membrane and pia mater surrounding the brain and spinal cord, filled with cerebrospinal fluid.

Filum Terminale

The filum terminale is a thin, fibrous tissue extension from the lower end of the spinal cord, anchoring the spinal cord to the coccyx and stabilizing it within the spinal column.