For markets to be in equilibrium (that is, for there to be no strong pressure for prices to depart from their current levels),

Answers:	a. The past realized rate of return must be equal to the expected rate of return; that is, .
	b. No companies can be in danger of declaring bankruptcy.
	c. The expected rate of return must be equal to the required rate of return; that is, = r.
	d. The required rate of return must equal the realized rate of return; that is, r = .
	e. All companies must pay dividends.