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Investment in Equilibrium

Investment is within equilibrium in all of the given cases EXCEPT while: (w) after adjusting for risk, maturity, and liquidity, all income producing assets yield identical returns. (x) all prices of assets exactly equal their respective present values. (y) the typical expected rate of return onto investment equals the market rate of interest. (z) the risks for all investments are equal, irrespective of their rates of return, as long as their present values are the same.

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