Question: Holding everything else equal, if the expected return on MyCompany stock increases from 10% to 15% and the expected return onThat Company stock increases from

Holding everything else equal, if the expected return on MyCompany stock increases from 10% to 15% and the expected return onThat Company stock increases from 10% to 12%, the demand for MyCompany stock

A. decreases because owners are now wealthier.

B. increases because the expected return has increased relativeto the alternative asset.

C. decreases because it is riskier.

D. increases because the expected return of That Company stockincreased
.

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