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Which one of the following statements is correct? a) If a stock is currently undervalued by the market, marginal investors will sell the stock. b)If
Which one of the following statements is correct?
a) If a stock is currently undervalued by the market, marginal investors will sell the stock.
b)If a stock is currently overvalued by the market, marginal investors will buy the stock.
c) If a stock is currently undervalued by the market, its expected return will increase as its price rises.
d) If a stock is currently overvalued by the market, its expected return will increase as its price drops.
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