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

Question 83

Multiple Choice

Everything else held constant,if the expected return on ABC stock rises from 5 to 10 percent and the expected return on CBS stock is unchanged,then the expected return of holding CBS stock ________ relative to ABC stock and the demand for CBS stock ________.


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

Correct Answer:

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