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:

Second Bank

A term likely referring to the Second Bank of the United States, a national bank that operated from 1816 to 1836, playing a pivotal role in early American financial policy.

National Government Debt

The total amount of money that a country's government has borrowed, through various means, and has yet to repay.

Federal Expenditures

The spending of government funds, allocated through the federal budget, on various national programs, services, and infrastructure.

Corporate Enterprises

Organizations or companies engaged in commercial, industrial, or professional activities, often structured to yield profits for shareholders.