Ask Question
BusinessBusiness
12 February, 04:21

For markets to be in equilibrium, that is, for there to be no strong pressure for prices to depart from their current levels, a. The past realized rate of return must be equal to the expected future rate of return; that is,. b. The required rate of return must equal the past realized rate of return; that is, r

+5
Answers (1)
  1. 12 February, 08:14
    0
    C) The expected rate of return must be equal to the required rate of return; that is, r~ = r.

    Explanation:

    In order for markets to be in equilibrium, each stock's expected rate of return should equal the investors' required rate of return.

    If the investors' required rate of return is higher than the stock's expected rate of return, then the price will be pressured downwards. If the investors' required rate of return i slower than the stock's rate of return, then the price will be pressured upwards.
Know the Answer?
Not Sure About the Answer?
Find an answer to your question ✅ “For markets to be in equilibrium, that is, for there to be no strong pressure for prices to depart from their current levels, a. The past ...” in 📘 Business if you're in doubt about the correctness of the answers or there's no answer, then try to use the smart search and find answers to the similar questions.
Search for Other Answers
You Might be Interested in
Palmona Co. establishes a $140 petty cash fund on January 1. On January 8, the fund shows $31 in cash along w / receipts for the following expenditures: postage, $49; transportation-in, $10; delivery expenses, $12; and miscellaneous expenses, $38.
Answers (1)
Materials used by the Instrument Division of Ziegler Inc. are currently purchased from outside suppliers at a cost of $1,350 per unit. However, the same materials are available from the Components Division.
Answers (1)
At a county the ration of the number of boy to the number of girls is 2:7. if there are 250 more girls than boys, how many boys are at the correct
Answers (1)
An investor deposits? $2000 in a mutual fund that returns 7?% at the end of 1 year. determine the length of time required for the investment to tripletriple its value if the annual rate of return remains the same.
Answers (1)
Your office may be going green is a current office trend. A. True B. False
Answers (1)
New Questions in Business
Assume Joe Harry sells his 25% interest in Joe's S Corp., Inc. to Tyrone on January 29. Using the daily allocation method, how much income does Joe Harry report if Joe's S Corp., Inc.
Answers (1)
Whirlwind Financial Corporation sends its executives to a resort in Mexico-at taxpayer's expense-to consider using the firm's cash to buy back its stock and thereby prop up the value. Many of its competitors are doing the same thing.
Answers (1)
LO 7.2Rehydrator makes a nutrition additive and expects to sell 3,000 units in January, 2,000 in February, 2,500 in March, 2,700 in April, and 2,900 in May.
Answers (1)
The common stock of Alpha Manufacturers has a beta of 1.18 and an actual expected return of 13.33 percent. The risk-free rate of return is 3.3 percent and the market rate of return is 12.20 percent.
Answers (1)
Borrowing money to pay for expensive items like student loans and home mortgages with the intent to pay it back in fixed monthly payments is called installment credit an unsecured loan a secured credit card compounding interest
Answers (2)
Home » Business » For markets to be in equilibrium, that is, for there to be no strong pressure for prices to depart from their current levels, a. The past realized rate of return must be equal to the expected future rate of return; that is,. b.
Sign Up Forgot Password?