Suppose There Is a Reduction of the Return Provided on U.S.Treasury

question 105

Multiple Choice

Suppose there is a reduction of the return provided on U.S.Treasury bonds.We should expect the current price of stocks to:

• A)increase since the risk-free return is now lower.
• B)decrease since U.S.Treasury bonds are safer.
• C)increase since the risk premium on the stocks will increase.
• D)stay the same; there is no effect on stock prices from this reduction.

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The surrounding physical space including natural and man-made elements, which significantly influences individuals’ well-being and behavior.

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An abstract concept referring to the beyond physical or material aspects of existence and how they might influence an individual or context.

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