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For a stock to be in equilibrium, that is, for there to be no long-term pressure for its price to depart from its current level, then a.the expected future return must be less than the most recent past realized return. b.the past realized return must be equal to the expected return during the same period. c.the expected future returns must be equal to the required return. d.the required return must equal the realized return in all periods. e.the expected return must be equal to both the required future return and the past realized return.

Answer :

Answer:

c.the expected future returns must be equal to the required return.

Explanation:

When the stock is at equilibrium than the intrinsic value of the stock is equivalent to the market price of the stock that depicts that the expected returns which held in the future should be equivalent to the required return

Therefore the option c is correct

And, the other options that are mentioned in the question are incorrect

ogorwyne

For a stock to be in equilibrium, the expected future returns must be equal to the required return.

The correct answer to this question is answer option c. At the equilibrium position there is a balance between the expected returns and the required returns.

At this point the intrinsic value is the same thing as the market value. Telling us that the rate the investor is expecting is the same as the actual required rate of return.

Read more on https://brainly.com/question/17136657

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