If the yields on treasury bonds rise significantly

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If the yields on treasury bonds rise significantly but there is no change in the outlook for economic growth and profits (and no change in investor risk aversion level or required risk premium) the stock market should

A) soar as fast as the speed of high frequency trading

B) rise slightly

C) remain unchanged

D) rise intially and then fall in future years

E) fall

F) rise if the average probability of default for the 500 companies in the S&P 500 index as estimated by Bloombergs sophisticated computer model is less than the default rate implied by credit spreads

G) rise if the average probability of default for the 500 comapnies in the S&P 500 index as estimated by Bloombergs sophisticated computer model is greater than the default rate implied by credit spreads

H) rise if the average probability of default for the 500 comapnies in the S&P 500 index as estimated by Bloombergs sophisticated computer model is equal te default rate implied by credit spreads

Reference no: EM131015948

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