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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 ________.

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Definitions:

Extraction Cost

The expenses associated with the removal of raw materials from the earth, such as mining or drilling.

User Cost

The cost associated with the use of a service or the depletion of a capital good.

Fishery

An area with a naturally occurring population of aquatic species which can be harvested for economic purposes.

Marine Animal

An animal that inhabits the ocean or other marine environments.

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