Suppose a Stock Has a Higher Expected Rate of Return

question 128

Multiple Choice

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

• A)the price of the stock will rise and the expected rate of return will decrease.
• B)the price of the stock will fall and the interest rate will decrease.
• C)the price of the stock will fall and the expected rate of return will increase.
• D)the price of the stock will fall and the expected rate of return will decrease.
• E)Not enough information is given to determine the return on the stock.

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Definitions:

Neurons

are the basic working units of the brain and nervous system, responsible for receiving, processing, and transmitting information through electrical and chemical signals.

Axon

A thin, elongated extension of a neuron, or nerve cell, that usually carries electrical signals from the cell body of the neuron.

Epineurium

The outermost layer of connective tissue surrounding a peripheral nerve, providing protection and support.

Nerve Fibers

Long projections of neurons that transmit electrical impulses throughout the body, facilitating communication between the brain, spinal cord, and other areas.