When Americans or Foreigners Expect the Return on ________ Assets

question 90

Multiple Choice

When Americans or foreigners expect the return on ________ assets to be high relative to the return on ________ assets,there is a ________ demand for dollar assets,everything else held constant.

• A)dollar;foreign;constant
• B)dollar;foreign;higher
• C)foreign;dollar;higher
• D)foreign;dollar;constant

Understand the valuation models for stocks with nonconstant and constant growth.

Know the rights of shareholders, including preemptive rights and implications of dual-class shares.

Identify factors that cause a difference between a stock’s market value and its intrinsic value.

Grasp the role of the marginal investor in determining stock prices.

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Definitions:

Variable-ratio

A reinforcement schedule in behavioral psychology where a response is reinforced after an unpredictable number of responses.

Latent Learning

A form of learning that occurs without any obvious reinforcement of the behavior or associations that are learned.

Discrimination Learning

The process of learning to respond differently to various stimuli or situations, often by recognizing differences.

Cognitive Map

A cognitive map is a mental representation of a person's physical environment, allowing them to navigate and understand spatial information.