If a Stock's Expected Return as Seen by the Marginal

question 68

True/False

If a stock's expected return as seen by the marginal investor exceeds his or her required return,then the investor will buy the stock until its price has risen enough to bring the expected return down to equal the required return.

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Definitions:

Advantages

Benefits or favorable factors that contribute to success in a competitive situation or to achieve a goal.

Disadvantages

Conditions or situations that place someone or something at a lesser advantage compared to others.

Several Houses

A phrase referring to more than one residential dwelling.

Framing Effects

The phenomenon where people's decisions and preferences can be significantly influenced by the way information, choices, or situations are presented.