Question content area

Part $1$

Explain why you would be more or less willing to buy a share of Microsoft stock in the following$$situations:

LOADING...

Part $2$

You would be

$$

$$

less

more

willing to buy a share of Microsoft stock if your wealth falls because$$

$$

$$

you believe holding stocks is not a good option with less wealth

you have less money to spend on all of your potential assets

bonds are a better investment

$.$

Part $3$

You would be

$$

$$

less

more

willing to buy a share of Microsoft stock if you expect the stock to appreciate in value because

$$

$$

you believe the amount of the return on your investment will be positive

you feel bonds are a much better return on your investment

you think fewer people will want to buy the stock in future years

$.$

Part $4$

You would be

$$

$$

less

more

willing to buy a share of Microsoft stock if the bond market becomes more liquid because

$$

$$

you can now sell stocks easier than bonds

it is easier to turn your stocks into spending money now

you can now sell bonds easier than stocks

$.$

Part $5$

You would be

$$

$$

less

more

willing to buy a share of Microsoft stock if you expect gold to appreciate in value because

$$

$$

you feel gold is not as secure of an investment

stocks are still a better investment

the return on gold relative to stocks has improved

$.$

Part $6$

You would be

$$

$$

more

less

willing to buy a share of Microsoft stock if prices in the bond market become more volatile because

$$

$$

the returns on bonds have improved in value

stocks have become relatively safer than bonds

bonds have become relatively safer than stocks

$.$