Factors that determine the demand for an asset include changes in the
A) wealth of investors.
B) liquidity of bonds relative to alternative assets.
C) expected returns on bonds relative to alternative assets.
D) risk of bonds relative to alternative assets.
E) all of the above.

Question

Quizplus · Accepted Answer

All of the factors listed play a role in determining the demand for an asset. A change in investor wealth can affect the amount of assets they are willing and able to purchase, liquidity and risk can impact investor preference for a particular asset, and expected returns on an asset are a key consideration for investors when deciding whether to invest or divest.

Factors That Determine the Demand for an Asset Include Changes