Holding Everything Else Constant

question 75

Multiple Choice

Holding everything else constant

• A)if asset A's risk rises relative to that of alternative assets,the demand will increase for asset A.
• B)the more liquid is asset A,relative to alternative assets,the greater will be the demand for asset A.
• C)the lower the expected return to asset A relative to alternative assets,the greater will be the demand for asset A.
• D)if wealth increases,demand for asset A increases and demand for alternative assets decreases.

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Definitions:

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