The realized rate of return on a stock is always equal to expected rate of return when the stock is purchased at the current market value.

Question

Quizplus · Accepted Answer

The realized rate of return on a stock can be higher or lower than the expected rate of return, depending on various factors such as market conditions, company performance, and unforeseen events. The expected rate of return is simply an estimate based on available information, and there are no guarantees that it will be achieved.

The Realized Rate of Return on a Stock Is Always