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Q1: youve noticed that the return on large cap stock decreased from 1/1/2016 to 1/1/2017. if the market is in equilibrium, how would this affect
Q1: youve noticed that the return on large cap stock decreased from 1/1/2016 to 1/1/2017. if the market is in equilibrium, how would this affect your required rate of return for large stock today (8-22-18)
a. your required RR would increase
b. your required RR would decrease
c. your required RR will be unaffected
d. cannot be determined
Q8: all else being equal a stocks value will increase if it's required return increases?
true or false
Q9: the nominal risk free rate is less stable over time as compared to the real risk free rate?
true or false
Q11: inflation has no bearing on the real risk free rate?
true or false
Q12: the geometric mean return assumes returns are compounded over an investments life?
true or false
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