For a Stock to Be in Equilibrium, Two Conditions Are

question 63

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:

Thematic Apperception Test

is a psychological assessment tool in which individuals are asked to create stories based on ambiguous images, used to uncover underlying thoughts, feelings, and themes about themselves and the world.

Projective

Relating to a type of psychological test in which individuals reveal their unconscious feelings and thoughts through the interpretation of ambiguous stimuli.

Self-report

A method of gathering data where individuals provide information about themselves, typically through questionnaires or interviews.

Observational

Pertaining to the method of gathering data by watching behavior or events as they occur in their natural setting without interference.