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.
Correct Answer:

Verified
Correct Answer:
Verified
Q38: The term "independent deviations from rationality" implies
Q39: If the markets are efficient, then why
Q40: The day-of-the-week effect is defined as the
Q41: Which one of the following statements related
Q42: Security A and Security B have similar
Q44: Which one of the following statements concerning
Q45: Dover Lumber announced last week that its
Q46: Samson Co. announced its merger plans on
Q47: Which form of market efficiency exists if
Q48: Arbitrage traders:<br>A)tend to be well capitalized.<br>B)tend to