For a Stock to Be in Equilibrium, Two Conditions Are

question 130

True/False

For a stock to be in equilibrium, two conditions are necessary: (1) The stock's market price must equal its intrinsic value as seen by the marginal investor and (2) the expected return as seen by the marginal investor must equal this investor's required return.

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Definitions:

Smooth Muscle

A type of muscle found in the walls of internal organs and blood vessels, controlled involuntarily.

ACSM

The American College of Sports Medicine, an organization focused on sports medicine and exercise science.

Reps

Short for repetitions, the number of times an exercise movement is performed in a set during strength training.

Voluntary Muscles

Muscles whose movement can be consciously controlled by the individual, involved in activities such as walking or talking.