A general increase in interest rates will raise the required rates of return for all stocks.

Name: A general increase in interest rates will raise the required rates of return for all stocks.
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Question

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When interest rates increase, investors can earn higher returns on fixed-income securities, such as bonds. This makes stocks relatively less attractive and increases their required rates of return in order to compensate investors for the increased risk.

A General Increase in Interest Rates Will Raise the Required