The market for a stock is said to be in equilibrium when

Question

The market for a stock is said to be in equilibrium when the _____.

a. expected return on the stock is equal to its required return

b. expected return on the stock is equal to the risk-free rate of return

c. expected return on the stock is equal to the market risk premium

d. expected return on the stock is equal to the market return

e. expected return on the stock is equal to its historical return

Answer

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