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neezy neezy
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2 months ago
James is willing to settle for a 10% rate of return on EG stock at a time when investors, on average, are requiring an 11% rate of return on the same stock. Which of the following will happen?

▸ James will have to pay more for the stock than he was willing to pay.

▸ Investors with different required rates of return will pay different prices for the stock.

▸ James will not be able to buy the stock unless the price changes.

▸ James will be happy to buy the stock for less than he was willing to pay.
Textbook 

Fundamentals of Investing


Edition: 14th
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romeo_izzy13romeo_izzy13
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James will be happy to buy the stock for less than he was willing to pay.

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