Question

Suppose that an Exxon Mobil bond has a return of ​% half the time and ​% the other half. The expected return on this bond is    12.0​%. ​(Round your response to the nearest one decimal​ place) Part 2

Answer 1

The demand for the alternative assets​ (substitutes) declines.

What is demand?

• Demand in economics refers to a consumer's readiness to pay a particular price for goods and services as well as their desire to buy them.
• Demand for a good or service typically declines when its price goes up.
• The amount needed will rise when a product's price drops, in a similar manner.
• Consumers and businesses are quite familiar with the idea of demand because it makes sense and happens organically throughout the course of almost any day.

For instance, when a product's pricing is low, shoppers who are keeping an eye on it will buy more of it. When costs increase, such as during a change in season, consumers may buy less or even nothing at all.

20% / 2 = 10%

14% / 2 = 7%

10% + 7% = 17%

The demand for the alternative assets​ (substitutes) declines.

Know more about demand with the help of the given link:

brainly.com/question/14456267

#SPJ4