Question: Holding everything else equal, if the expected return on My Company stock increases from 1 0 % to 1 5 % and the expected return
Holding everything else equal, if the expected return on My Company stock increases from to and the expected return on That Company stock increases from to the demand for My Company stock
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Part
A
increases because the expected return has increased relative to the alternative asset.
B
decreases because owners are now wealthier.
C
increases because the expected return of That Company stock increased.
D
decreases because it is riskier
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