Everything Else Held Constant, If the Expected Return on Bonds

question 107

Multiple Choice

Everything else held constant, if the expected return on bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock ________ relative to bonds and the demand for GE stock ________.

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

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Definitions:

Hypnopompic Hallucinations

Vivid and often frightening hallucinations occurring when waking up from sleep.

REM Sleep

REM Sleep, or Rapid Eye Movement sleep, is a unique phase of sleep characterized by fast, random movement of the eyes, vivid dreams, and increased brain activity.

Hypnagogic Hallucination

Vivid and often surreal hallucinations that occur in the transition from wakefulness to sleep.

Hypnopompic Image

Vivid sensory phenomena or visual hallucination experienced upon waking up, often associated with the transition from sleep to wakefulness.