Suppose a Stock Has a Lower Expected Rate of Return

question 31

Multiple Choice

Suppose a stock has a lower expected rate of return than a bank account. Then

• A)there will be an excess supply of the stock and its price will rise.
• B)there will be an excess supply of the stock and its price will fall.
• C)there will be an excess demand for the stock and its price will rise.
• D)individuals will choose indifferently between the stock and the bank account.
• E)risk-averse individuals will prefer the stock.

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Definitions:

Muscle-Strengthening

Physical activities and exercises that increase muscle strength, endurance, and mass.

Nutrition Counselors

Professionals specializing in offering guidance and advice on diet and nutrition to help individuals achieve health goals or manage medical conditions.

Physical Activity Planning

The process of designing a structured approach to increase the physical movements or exercises in one's daily routine for health benefits.

Aerobically

Pertaining to or involving aerobic exercise, which improves the efficiency of the body's cardiovascular system in absorbing and transporting oxygen.