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If expected return is less than required return on an asset, rational investors will ________.

betterway

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7 years ago

If expected return is less than required return on an asset, rational investors will ________.

If expected return is less than required return on an asset, rational investors will ________.
A) buy the asset, which will drive the price up and cause expected return to reach the level of the required return
B) sell the asset, which will drive the price down and cause the expected return to reach the level of the required return
C) sell the asset, which will drive the price up and cause the expected return to reach the level of the required return
D) buy the asset, since price is expected to increase

Textbook

Principles of Managerial Finance

Edition: 14^th

Authors: Gitman, Zutter

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donnaban

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betterway Author

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7 years ago

Thanks

Shassta22

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Yesterday

Good timing, thanks!

homework1

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2 hours ago

Thank you, thank you, thank you!

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