345 2012 MT with answers

d 12 increase increase decrease decrease increase

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Unformatted text preview: rease decrease. decrease increase. decrease decrease. increase Consider an adjustment to our basic model where the same entry process th<:Jt occurs in Phases I and ll now occurs in Phases IV and I. Assume the same time-path of gro\Ylh rates. Then. stock prices \.viii he _ _____ as we enter Phase I and the peak of the stock market in Phase II will occur than before. a ) higher, soom:r b l lower later c) d .) ( higher~. later lower, sooner 13. In Phase Ill of our stock market model. expected earnings arc ______ than actual earnings and avcmge stock prices arc a.) greater. necessarily falling b l less, possibly rising c l greater. possibly rising d) less , necessarily falling 14. In comparing the \·olatility of the U.S. stock market to that of a less developed economy such as BraziL we would ·expcct Brazil to exhibit <!SSCt price Jluctuations over the cycle. primarily because it has a ·- p;-op~~rtion of new firms . r1. l urcater. greater b l ~mllller. ~mallcr c l !!realer. smaller d) ~ ...
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