Which of the Following Statements Is Most Correct Regarding the General

question 135

Multiple Choice

Which of the following statements is most correct regarding the general relationship between stocks and interest rates?

• A) There is no relationship between interest rates and stock prices.
• B) As interest rates increase, stock prices should also increase.
• C) As interest rates increase, stock prices should decrease.
• D) Stock prices are negatively exponentially related to interest rate increases.
• E) None of the above

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