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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

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

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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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