The Behavior of Interest Rates - Determinants of Asset Demand - Expected return
4 important questions on The Behavior of Interest Rates - Determinants of Asset Demand - Expected return
How are expected (mean) returns calculated?
What happens when the expected return of the stocks rises relative to the expected return of other assets?
When does the expected return of the stock rises relative to the expected return of other assets?
- when the expected return of the alternative investments drop, and of the stock stays the same
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What happens when there is an increase in an asset’s expected return relative to that of an alternative asset?
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