An increase in the prevailing interest rate ?

Related Mcqs:

Which of the following should cause the price of a share of stock to rise ?

A. None of these answers B. An increase in expected dividends C. A reduction in aggregate risk D. A reduction in the interest rate E. All of these answers...

Share prices will follow a random walk if ?

A. shares are overvalued B. people behave irrationally when choosing shares C. markets reflect all available information in a rational way D. shares are undervalued...

It is difficult for an actively managed investment fund to outperform an index fund because ?

A. stock markets tend to be inefficient B. all of these answers C. index funds are able to buy undervalued stocks D. actively managed funds trade more often and charge fees for their alleged expertise...

If people are risk averse, then ?

A. None of these answers are true B. All of these answers are true C. They dislike bad things more than the like comparable good things D. The utility they would lose from losing a Rs50 bet would exceed the utility they would gain from winning a Rs 50 bet Their utility function exhibit the … If people are risk averse, then ?Read More...

Speculative bubbles may occur in the shares market ?

A. during periods of extreme pessimism because so many stocks become undervalued B. only when people are irrational C. when stocks are fairly valued D. because rational people may buy an overvalued share if they think they can sell it to someone for even more at a later date...