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Which One of the Following Will Automatically Occur If All

Question 43

Multiple Choice

Which one of the following will automatically occur if all investors are rational?


A) All stock prices will be equal.
B) Equivalent risk assets will have equal expected rates of return.
C) All investors will earn the market rate of return.
D) All investors will earn the same rate of return.
E) The riskier an asset, the higher its market price will be.

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