Which of the following is expected for a stock whose expected return is less than its required return? a. The stock's price will go up. b. The stock's price will stay the same. c. The stock's price will go down. d. The stock's expected return will increase. e. Both C and D are expected.

Question

Sydney Grant

Business

15 October, 16:04

Which of the following is expected for a stock whose expected return is less than its required return? a. The stock's price will go up. b. The stock's price will stay the same. c. The stock's price will go down. d. The stock's expected return will increase. e. Both C and D are expected.

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Answers (2)

Know the Answer?

Kaya Curtis · Answer 1

The answer is option E

Explanation:

For a stock whose expected return is less that its required return, the stock's price will go down and the stock's expected return will increase.

Hence option E is the correct option

Karli Stout · Answer 2

Karli Stout 15 October, 16:28

0

E. Both C and D are expected.