Factors That Determine the Demand for an Asset Include Changes

question 33

Multiple Choice

Factors that determine the demand for an asset include changes in the

• A) wealth of investors.
• B) liquidity of bonds relative to alternative assets.
• C) expected returns on bonds relative to alternative assets.
• D) risk of bonds relative to alternative assets.
• E) all of the above.

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Definitions:

Public

Pertaining to or involving the affairs of the community as a whole, often relating to government or public companies accessible to all people.

Semistrong-Form Efficient

A market hypothesis stating that share prices incorporate all publicly available information, making it impossible to consistently achieve higher returns.

Weak-Form Efficient

A market hypothesis suggesting that all past prices of stock are reflected in the current price, hence historical data cannot be used to predict future prices.

Strong-Form Efficient

A hypothesis that states all information, both public and private, is completely accounted for in stock prices, and that no investor can achieve consistently higher returns.