What Must Occur for a Stock to Be in Equilibrium,that

question 3

Multiple Choice

What must occur for a stock to be in equilibrium,that is,for there to be no consistent pressure for its price to depart from its current level?

• 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 future returns must be equal to the required return.

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