If the anticipated return exceeds the required rate of return, the investor should buy the stock.

Name: If the anticipated return exceeds the required rate of return, the investor should buy the stock.
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Quizplus · Accepted Answer

If the anticipated return on a stock exceeds the required rate of return, it indicates that the stock is expected to perform better than what the investor deems necessary to compensate for the risk involved, making it a good investment opportunity.

If the Anticipated Return Exceeds the Required Rate of Return