Which of the following conditions would exist if equity markets were in equilibr

ID: 2733776 • Letter: W

Question

Which of the following conditions would exist if equity markets were in equilibrium?

Select one:

A. Every stock's expected return will equal its realized return as viewed by the marginal investor.

B. Every stock's expected return will equal its required rate of return as viewed 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 all stocks and bonds will be the same.

E. All stocks should have the same realized return during the next year.

B. Every stock's expected return will equal its required rate of return as viewed by the marginal investor.

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