Question: If the expect return on LM stock increases from 3 to 6 percent, and the return on OP stock increases from 6 to 12 percent,

If the expect return on LM stock increases from 3 to 6 percent, and the return on OP stock increases from 6 to 12 percent, the expected return of holding LM stock ________ relative to OP stock and the demand for LM stock _________.

a. falls; falls

b. falls; rises

c. remains unchanged; remains unchanged

d. rises; rises

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