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If the expect return on LM stock increases from 3 to 6 percent, and the return on OP stock increases from 6 to 12 percent,
If the expect return on LM stock increases from 3 to 6 percent, and the return on OP stock increases from 6 to 12 percent, the expected return of holding LM stock ________ relative to OP stock and the demand for LM stock _________.
a. falls; falls
b. falls; rises
c. remains unchanged; remains unchanged
d. rises; rises
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