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

1 answer:

6 0

Sell the asset, which will drive down the price and cause the expected return to reach the level of the required return.

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The most likely answer is option D

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OleMash [197]

Answer:

12%

Explanation:

The discount rate will be PV/FV -1

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i = 1.12-1

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3 years ago

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