Holding everything else constant,
A) if asset A's risk rises relative to that of alternative assets, the demand will increase for asset A.
B) the more liquid is asset A, relative to alternative assets, the greater will be the demand for asset A.
C) the lower the expected return to asset A relative to alternative assets, the greater will be the demand for asset A.
D) if wealth increases, demand for asset A increases and demand for alternative assets decreases.
Answer: B
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