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:

Offsite Training

Instruction or education programs conducted away from the usual work location to provide a unique, often more focused learning environment.

Tightrope Walking

A metaphor for managing a difficult and risky balance between differing or opposing conditions or priorities.

Informal Communication

The exchange of information through unofficial channels, often based on personal relationships rather than organizational structure.

Team Development

The process of enhancing the effectiveness, cohesiveness, and performance of a work group or team.