Suppose a Stock Has the Same Expected Rate of Return

question 15

Multiple Choice

Suppose a stock has the same expected rate of return as a bank account. Then the price of the stock will

• A)rise and the expected rate of return will decrease.
• B)fall and the interest rate will decrease.
• C)rise and the expected rate of return will increase.
• D)fall and the expected rate of return will increase.
• E)fall and the expected rate of return will decrease.

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Definitions:

Attachment Behaviors

Actions and patterns of behavior that are designed to achieve closeness to an attachment figure, typically aimed at maintaining safety and security.

Crawling

The action of moving on all fours, typically noted as an early form of locomotion in infants before they learn to walk.

Distress

Negative stress that results in anxiety, depression, or other negative feelings, contrasting with positive stress which can be motivating.

Vygotsky

Lev Vygotsky, a Russian psychologist known for his theory on social development, emphasizing the influence of social interaction on cognitive development.