If Stocks Pay a Higher Risk-Adjusted Return Than Bonds, Then

question 21

Multiple Choice

If stocks pay a higher risk-adjusted return than bonds, then

• A)investors will sell stocks.
• B)investors will buy bonds.
• C)there will be a tendency for stock prices to rise and bond prices to fall.
• D)stock prices will fall and bond prices will rise.

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Definitions:

Graded Potentials

Changes in membrane potential that vary in size and do not follow the all-or-none principle, important in the initiation of action potentials.

Sodium-Potassium Pump

A vital cell membrane protein that exchanges sodium for potassium across the plasma membrane, critical for cellular functions.

Divergence

The functional arrangement of neurons in which a neuron sends signals to two or more postsynaptic neurons. Compare with convergence.

Nitric Oxide

A gas that functions as a signaling molecule in the body, playing roles in the immune system, neurological system, and regulation of blood vessels.