Suppose a Stock Has a Higher Expected Rate of Return

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.