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

question 33

Multiple Choice

Everything else held constant,if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent,then the expected return of holding RST stock ________ relative to XYZ stock and demand for XYZ stock ________.

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

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Definitions:

Optical Storage

A method of storing data on a disc using optical technology, such as CDs, DVDs, and Blu-ray discs.

Hard Drives

Data storage devices used in computers and other devices, employing magnetic storage to save and retrieve digital information.

Output Technologies

Technologies concerned with the presentation of data, including monitors, printers, and audio systems, designed to communicate information to the user.

Microprocessor

A computer processor contained on a single integrated circuit, performing the functions of a CPU in a computer system.