For a Stock to Be in Equilibrium,that Is,for There to Be

question 80

Multiple Choice

For a stock to be in equilibrium,that is,for there to be no long-term pressure for its price to depart from its current level,then

• A)the expected future return must be less than the most recent past realized return.
• B)the past realized return must be equal to the expected return during the same period.
• C)the required return must equal the realized return in all periods.
• D)the expected return must be equal to both the required future return and the past realized return.
• E)the expected future return must be equal to the required return.

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Definitions:

Total Revenue

The total amount of money generated by a business from the sale of its goods or services before any costs or expenses are deducted.

Total Revenue

The total amount of money received by a company for goods sold or services provided during a certain period of time.

Price Inelastic

A characteristic of a good for which the demand does not significantly change with a change in its price.

Agricultural Output

The total amount of agricultural products produced, including crops and livestock, within a specific period.