QUESTION 18 For the question below, clearly STATE which of the choice(s) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why. (Note: You can write several...


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QUESTION 18<br>For the question below, clearly STATE which of the choice(s) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why.<br>(Note: You can write several full sentences in the answer boxes but keep the explanations to 5-30 words).<br>Ques: For markets to be in equilibrium/efficient (that is, for all current information be incorporated into stock prices),<br>a. The expected rate of return must be equal to the required rate of return.<br>b. The past realized rate of return must be equal to the expected rate of return.<br>c. The required rate of return must equal the realized rate of return.<br>d. All three of the above statements must hold for equilibrium to exist.<br>e. None of the above statements is correct.<br>QUESTION 19<br>

Extracted text: QUESTION 18 For the question below, clearly STATE which of the choice(s) is/are CORRECT and which are INCORRECT? If a statement is incorrect, you must briefly explain why. (Note: You can write several full sentences in the answer boxes but keep the explanations to 5-30 words). Ques: For markets to be in equilibrium/efficient (that is, for all current information be incorporated into stock prices), a. The expected rate of return must be equal to the required rate of return. b. The past realized rate of return must be equal to the expected rate of return. c. The required rate of return must equal the realized rate of return. d. All three of the above statements must hold for equilibrium to exist. e. None of the above statements is correct. QUESTION 19

Jun 09, 2022
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