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

question 63

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 past realized rate of return must be equal to the expected future rate of return; that is, .
• B) the required rate of return must equal the past realized rate of return; that is, r = .
• C) the expected rate of return must be equal to the required rate of return; that is, = r.
• D) all of the above statements must hold for equilibrium to exist; that is = r = .
• E) none of the above statements is correct.

---

Definitions:

Operant

In psychology, an operant is any behavior that is strengthened or weakened by the consequences it produces.

Conscious Control

The deliberate use of one's awareness and intentions to guide actions or thoughts, often in self-regulation or decision making.

Employee Performance

The level of effectiveness and efficiency with which an employee carries out their assigned tasks and responsibilities.

External Events

Occurrences outside an organization that can impact its operations, strategies, and success, often unpredictably.