An Increase in an Asset's Expected Return Relative to That

question 72

Multiple Choice

An increase in an asset's expected return relative to that of an alternative asset,holding everything else constant,________ the quantity demanded of the asset.

• A)increases
• B)decreases
• C)has no effect on
• D)erases

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Definitions:

Internal Factor

Influences originating within an individual, such as personal beliefs, values, and biological characteristics.

Perceptual Selection

The process by which individuals screen and select the various stimuli that vie for their attention, based on various factors.

Internal Factors

Elements within an organization such as corporate culture, employee morale, and internal processes that influence its operations.

Perceptual Selection

The process by which individuals select, organize, and interpret sensory information in the world around them.