Everything Else Held Constant,if the Expected Return on RST Stock

question 33

Multiple Choice

Everything else held constant,if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent,then the expected return of holding RST stock ________ relative to XYZ stock and demand for XYZ stock ________.

• A)rises;rises
• B)rises;falls
• C)falls;rises
• D)falls;falls

---

Definitions:

Credit Card Spending

The total amount of money being charged to a credit card account for purchases and cash advances.

Pro-Rated

Adjusted according to a certain rate, portion, or amount. Often used for payments or charges that are calculated based on usage or time period within a full billing cycle.

Fixed Expenses

Expenses that do not change based on the quantity produced, such as furniture or machinery.

Variable Expenses

Costs that change in amount from period to period, fluctuating with usage levels, economic conditions, or personal choice.