Suppose a Stock Has a Higher Expected Rate of Return

question 128

Multiple Choice

Suppose a stock has a higher expected rate of return than a bank account. Then

• A)the price of the stock will rise and the expected rate of return will decrease.
• B)the price of the stock will fall and the interest rate will decrease.
• C)the price of the stock will fall and the expected rate of return will increase.
• D)the price of the stock will fall and the expected rate of return will decrease.
• E)Not enough information is given to determine the return on the stock.

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Definitions:

Stakeholder Needs

The requirements or expectations that stakeholders have from a project, organization, or system which must be recognized and addressed for success.

Assimilation

The process by which an individual or group adopts the cultural traits or social patterns of another group, often losing original identity characteristics.

Cultural Values

The shared beliefs and norms within a culture that influence behaviors, decisions, and interactions among its members.

Acquired Company

A company that has been purchased by another entity, often resulting in changes in management, operations, or strategy.