Let's say that financial investors, who at least potentially are interested in buying stocks about market conditions. Their fear is such that it would take pretty significant returns to buy stocks. From what we learned in lecture, we know that this will tend to drive stock prices up because the risk-free interest rate will rise down because dividends will rise O down because dividends will fall down because the risk premium will rise

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter2: Risk And Return: Part I
Section: Chapter Questions
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Question 25
Let's say that financial investors, who at least potentially are interested in buying stocks, get afraid
about market conditions. Their fear is such that it would take pretty significant returns to get them
to buy stocks.
From what we learned in lecture, we know that this will tend to drive stock prices
up because the risk-free interest rate will rise
down because dividends will rise
O down because dividends will fall
down because the risk premium will rise
Transcribed Image Text:Question 25 Let's say that financial investors, who at least potentially are interested in buying stocks, get afraid about market conditions. Their fear is such that it would take pretty significant returns to get them to buy stocks. From what we learned in lecture, we know that this will tend to drive stock prices up because the risk-free interest rate will rise down because dividends will rise O down because dividends will fall down because the risk premium will rise
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