If Markets Are in Equilibrium, Which of the Following Conditions

question 56

Multiple Choice

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

• A) each stock's expected return should equal its required return as seen by the marginal investor.
• B) all stocks should have the same expected return as seen by the marginal investor.
• C) the expected and required returns on stocks and bonds should be equal.
• D) all stocks should have the same realized return during the coming year.
• E) each stock's expected return should equal its realized return as seen by the marginal investor.

---

Definitions:

Income Generation

Refers to the process of earning money through various activities, enabling individuals or groups to sustain their livelihoods.

Managing Households

The act of overseeing the day-to-day operations and finances of a family or household, including budgeting, shopping, and planning.

Scapegoat Theory

The assertion that prejudice and discrimination originate in the frustrations of people who want to blame someone else for their problems.

Cultural Norms

Collective norms and regulations that influence the conduct of individuals within societal collections.