If markets are in equilibrium, which of the following conditions will exist? Ans

Question

If markets are in equilibrium, which of the following conditions will exist?
Answer

Each stock's expected return should equal its realized return as seen by the marginal investor.

Each stock's expected return should equal its required return as seen by the marginal investor.

All stocks should have the same expected return as seen by the marginal investor.

The expected and required returns on stocks and bonds should be equal.

All stocks should have the same realized return during the coming year.

Explanation / Answer

Please rate correct answer first: Each stock’s expected return should equal its required return as seen by themarginal investor. is right one

Related Questions

Navigate

• Browse (All)
• Browse I
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.