Business, 04.06.2020 21:00, shaydog7107

If the expected return is above the required return on an asset, rational investors will: A. buy the asset, since price is expected to increase.
B. buy the asset, which will drive the price up and push the expected return to drop to the level of the required return.
C. sell the asset, which will drive the price down and cause the expected return to reach the level of the required return.
D. buy the asset, which will drive the price down and cause the expected return to reach the level of the required return.

Answers: 3

Show answers

Other questions on the subject: Business

Business, 22.06.2019 01:40, Cosio

Kis the insured and p is the sole beneficiary on a life insurance policy. both are involved in a fatal accident where k dies before p. under the common disaster provision, which of these statements is true?

Answers: 1

continue

Business, 22.06.2019 08:10, rleiphart1

Bakery has bought 250 pounds of muffin dough. they want to make waffles or muffins in half-dozen packs out of it. half a dozen of muffins requires 1 lb of dough and a pack of waffles uses 3/4 lb of dough. it take bakers 6 minutes to make a half-dozen of waffles and 3 minutes to make a half-dozen of muffins. their profit will be $1.50 on each pack of waffles and $2.00 on each pack of muffins. how many of each should they make to maximize profit, if they have just 20 hours to do everything?

Answers: 3

continue

Business, 22.06.2019 11:00, nathanbrockdac

Using a cps-sample of 7,440 individuals, you estimate the following regression: = 20.91 - 2.61 x female where female is a binary variable that takes on the value of 1 for females and is 0 otherwise. the standard error on the coefficient on female is 0.25. the 95% confidence interval for the gender wage gap, or the amount that females earn less, is: a) [-3.10, -2.12] b) [18.30, 23.52] c) [-3.02, -2.20] d) [-1.96, -1.64]

Answers: 3

continue

Business, 22.06.2019 13:50, 2023apd

Diamond motor car company produces some of the most luxurious and expensive cars in the world. typically, only a single dealership is authorized to sell its cars in certain major cities. in less populous areas, diamond authorizes a single dealer for an entire state or region. the manufacturer of diamond automobiles is using a(n) distribution strategy for its product.

Answers: 2

continue

Do you know the correct answer?

If the expected return is above the required return on an asset, rational investors will: A. buy th...