1.   If the expected rate of inflation is higher than the break-even rate of inflation, investors will prefer the index-linked bond.

2.   Like the CAPM it assumes that investors prefer more wealth to less, less risk to more risk, and that they are rational decision makers.

3.   They advanced the proposition that investors prefer high earnings growth rates, low variability of those growth rates, and high dividend payout ratios.

4.   All investors prefer a greater return, other things equal.

5.   Investors prefer one clean business rather than a bundle.

6.   As rates rise, investors often prefer bonds that pay interest because they can reinvest those interest payments at higher and higher rates.

7.   As rates rise, many investors prefer bonds that pay interest because they can reinvest those payments at higher and higher rates.

8.   Bond investors prefer moderate growth without inflation, because rising consumer prices erodes the fixed value of debt securities.

9.   Bond investors prefer moderate growth and little inflation because rising consumer prices erode the fixed principal and interest payments they receive on their bond investments.

10.   Bond investors prefer moderate growth and little inflation since rising consumer prices erode the fixed principal and interest payments they receive on their bond investments.