Everything Else Held Constant,if the Expected Return on ABC Stock

question 83

Multiple Choice

Everything else held constant,if the expected return on ABC stock rises from 5 to 10 percent and the expected return on CBS stock is unchanged,then the expected return of holding CBS stock ________ relative to ABC stock and the demand for CBS stock ________.

• A) rises; rises
• B) rises; falls
• C) falls; rises
• D) falls; falls

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Definitions:

Affiliation Needs

The human desire to feel a sense of involvement and belonging within a social group.

Achievement Needs

An individual's need for success and accomplishment, often driving motivation and goal-oriented behavior.

Safety Needs

A level in Maslow's hierarchy of needs that encompasses security, protection, and freedom from fear and anxiety.

Gender-Neutral

A term that refers to language and practices that avoid discrimination by not distinguishing roles according to people's sex or gender.