Everything Else Held Constant,if the Expected Return on U

question 81

Multiple Choice

Everything else held constant,if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent,then the expected return of holding GE stock ________ relative to U.S. Treasury bonds and the demand for GE stock ________.

• A)rises;rises
• B)rises;falls
• C)falls;rises
• D)falls;falls

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Definitions:

Flu Epidemic

refers to widespread outbreaks of the influenza virus that can affect large populations across multiple continents, such as the 1918 Spanish Flu pandemic.

Healthy Young Adults

Individuals typically aged between 18 and 35 who are in a stage of optimal physical health, often characterized by high levels of activity and low risk of disease.

Republicans

A political party in the United States, traditionally characterized by a conservative ideology, emphasizing limited government and free-market principles.

League of Nations

An international organization founded after World War I to promote world peace and cooperation, but ultimately unable to prevent World War II.