For Markets to Be in Equilibrium (That Is, for There $\overline { \mathrm { r } } = \tilde{ \mathrm { r } }$

Multiple Choice

For markets to be in equilibrium (that is, for there to be no strong pressure for prices to depart from their current levels) ,

A) The past realized rate of return must be equal to the expected rate of return; that is,
$\overline { \mathrm { r } } = \tilde{ \mathrm { r } }$ .
B) The required rate of return must equal the realized rate of return; that is, r =
$\overline { \mathrm { r } }$ .
C) All companies must pay dividends.
D) No companies can be in danger of declaring bankruptcy.
E) The expected rate of return must be equal to the required rate of return; that is,
$\tilde { \mathrm { r } }$ = r.