If Markets Are in Equilibrium,which of the Following Will Occur

question 64

Multiple Choice

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

• A)Each stock's expected return should equal its realized return as seen by the marginal investor.
• B)Each stock's expected return should equal its required return as seen by the marginal investor.
• C)All stocks should have the same expected return as seen by the marginal investor.
• D)The expected and required returns on stocks and bonds should be equal.

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Definitions:

Process Costing

A costing method used where similar goods are mass-produced, and costs are averaged over the units produced.

Paper Manufacturer

A business involved in the production of paper from wood pulp, recycled paper, or other materials.

Process Costing

An accounting method used to allocate costs to units of product in processes involving continuous mass production.

Job Order Costing

An accounting methodology used to allocate costs to specific batches or lots of products, often used in custom manufacturing.