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:

Middle-Aged Persons

Individuals typically in the age range of 45 to 65 years, often considered to be in the middle stage of life.

Adaptation

The process of adjusting or changing to become better suited to an environment or situation.

Decline

A decrease in the quality, quantity, or importance of something.

Middle Adulthood

A stage of life, typically ranging from age 40 to 65, characterized by increased personal and professional responsibilities, reflection on life achievements, and preparation for later life stages.