Holding Everything Else Equal,if the Expected Return on My Company

question 10

Multiple Choice

Holding everything else equal,if the expected return on My Company stock increases from 10% to 15% and the expected return on That Company stock increases from 10% to 12%,the demand for My Company stock

• A)increases because the expected return has increased relative to the alternative asset.
• B)decreases because it is riskier.
• C)decreases because owners are now wealthier.
• D)increases because the expected return of That Company stock increased.

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