If a stock's expected return exceeds its required return, this suggests what?
Answers:
A stock's required return, is the return set by the holder in apple-pie order for it to beconsidered a upright investment below the conditions. If it exceeds it required return, this is correct, but it should be reevailuated because it might not be sustainable in the long permanent status.
It routine the probability, taking the risk of the stock into consideration, is that the return on the stock will exceed your required return. The required return is the return which exceeds the investors other choices.