In analyzing a stock, you find that its expected return exceeds your required rate of return. This suggest that you think The stock should be sold. The stock is a good buy. Management is probably not trying to maximize the price per share. Dividends are not likely to be declared. The stock is experiencing supernormal growth. QUESTION 16 Assume that the current corporate bond yield curve is upward sloping. Under this condition, then we could be sure that The economy is not in a recession. Long-term bonds are a better buy than short-term bonds. Maturity risk premiums could help to explain the yield curve's upward slope. Long-term interest rates are more volatile than short-term rates. Inflation is expected to decline in the future
