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Everything Else Held Constant,if the Expected Return on RST Stock

Question 33

Multiple Choice

Everything else held constant,if the expected return on RST stock declines from 12 to 9 percent and the expected return on XYZ stock declines from 8 to 7 percent,then the expected return of holding RST stock ________ relative to XYZ stock and demand for XYZ stock ________.


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

Correct Answer:

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