The SML represents a state of stable equilibrium at which expected and required returns are at least equal. Suppose a stock is displaced so that its expected return is below its required return. Describe the market forces that tend to push the returns back together.

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The Answer of The SML represents a state of stable equilibrium at which expected and required returns are at least equal. Suppose a stock is displaced so that its expected return is below its required return. Describe the market forces that tend to push the returns back together.

The SML Represents a State of Stable Equilibrium at Which