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Yukinara Yukinara
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2 years ago
John requires a 12% 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?

▸ John 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.

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

▸ John will buy the stock at a lower price.
Textbook 
Fundamentals of Investing

Fundamentals of Investing


Edition: 14th
Authors:
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brendasantsbrendasants
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2 years ago
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