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If a Given Investor Believes That a Stock's Expected Return

Question 34

Multiple Choice

If a given investor believes that a stock's expected return exceeds its required return,then the investor most likely believes that


A) the stock is experiencing supernormal growth.
B) the stock should be sold.
C) the stock is a good buy.
D) management is probably not trying to maximize the price per share.
E) dividends are not likely to be declared.

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