If the expected return is above the required return on an asset,rational investors will:
A) Buy the asset, which will drive the price up and cause expected return to reach the required return.
B) Sell the asset, which will drive the price down and cause the expected return to reach the required return.
C) Sell the asset, which will drive the price up and cause the expected return to reach the required return.
D) Sell the asset, since price is expected to decrease.
Correct Answer:
Verified
Q100: If the last dividend paid by Chemical
Q101: Which of the following is not a
Q102: If capital markets are efficient,then:
A) There is
Q103: Which of the following statements is false?
A)
Q104: The basis for efficient markets includes all
Q106: Haugen-Dass Ice Cream just paid a $2.00
Q107: An efficient capital market is one in
Q108: According to the efficient market theory,
A) Prices
Q109: According to the random walk hypothesis,the best
Q110: If expected return is less than required
Unlock this Answer For Free Now!
View this answer and more for free by performing one of the following actions
Scan the QR code to install the App and get 2 free unlocks
Unlock quizzes for free by uploading documents