Everything Else Held Constant,if the Expected Return on U

question 81

Multiple Choice

Everything else held constant,if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent,then the expected return of holding GE stock ________ relative to U.S. Treasury bonds and the demand for GE stock ________.

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

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Definitions:

Pure Food and Drugs Act

An early 20th-century law aimed at regulating the labeling and safety of food and pharmaceuticals in the United States.

Food and Drugs

Pertains to regulations and standards that govern the safety, efficacy, and labeling of food, drugs, and cosmetics to protect public health.

Federal Legislation

Laws enacted by the national government of a country, in the case of the United States, laws passed by Congress and signed by the President.

Cease-and-desist Order

A legal order issued by a government agency or court to a person or entity to stop allegedly illegal activities.