If markets are in equilibrium, which of the following will occur?

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Question 1

If D₁= $2.40, g (which is constant) = 7.3%, and P₀= $68, what is the stock’s expected capital gains yield for the coming year?

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6.40%

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6.72%

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7.05%

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7.30%

Question 2

If markets are in equilibrium, which of the following will occur?

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Each stock’s expected return should equal its realized return as seen by the marginal investor.

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All stocks should have the same realized return during the coming year.

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Each stock’s expected return should be greater than its required return as seen by the marginal investor.

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Each stock’s expected return should equal its required return as seen by the marginal investor.

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TYSM

[31809pancho]

Thanks for the timely response, appreciate it