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The Demand Curve for Shares of a Stock Is Typically

Question 72

Multiple Choice

The demand curve for shares of a stock is typically


A) downward sloping,because people calculate present value according to different expectations and attitudes toward risk
B) vertical,because only a fixed number of shares of stock are available
C) horizontal,because everyone values the stock according to its present value
D) upward sloping,because a higher stock price signals to potential shareholders that the firm is more valuable
E) horizontal,because no one is willing to pay more than the market price

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