Everything else held constant, if the expected return on U.S. Treasury bonds falls from 10 to 5 percent and the expected return on GE stock rises from 7 to 8 percent, then the expected return of holding GE stock ________ relative to U.S
Treasury bonds and the demand for GE stock ________. A) rises; rises
B) rises; falls
C) falls; rises
D) falls; falls
A
Economics
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If the price of toothpaste is represented by equation P = 40 - .5QD, then the corresponding quantity of toothpaste demanded is represented by the equation
A) QD = 80 - 2P. B) QD = 40 - P. C) QD = 20 - .5P. D) QD = -20 + P.
Economics
Which of the following is the best description of the risks of corporate bonds?
a. the firm declines to pay dividends b. both bankruptcy and higher market interest rates c. only bankruptcy d. lower market interest rates e. both the firm declines to pay dividends and higher market interest rates
Economics