If a stock's expected return as seen by the marginal investor exceeds this investor's required return, then the investor will buy the stock until its price has risen enough to bring the expected return down to equal the required return.
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Q1: The tighter the probability distribution of its
Q3: Market risk refers to the tendency of
Q4: "Risk aversion" implies that investors require higher
Q5: Variance is a measure of the variability
Q6: Someone who is risk averse has a
Q7: For a stock to be in equilibrium,
Q8: The realized return on a stock portfolio
Q9: An individual stock's diversifiable risk, which is
Q10: Managers should under no conditions take actions
Q11: Risk-averse investors require higher rates of return
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