Difference between revisions of "Financial equilibrium"

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Revision as of 10:05, 28 October 2019

Financial equilibrium (or, simply, equilibrium) is the condition under which the intrinsic value of a security is equal to its price; also, when a security's expected return is equal to its required return.


Definitions

According to Financial Management Theory and Practice by Eugene F. Brigham and Michael C. Ehrhardt (13th edition),

Equilibrium. The condition under which the intrinsic value of a security is equal to its price; also, when a security's expected return is equal to its required return.

Related concepts

Related lectures