Which of the following is true about the change in a stock price??
A. ?If investors demand higher returns to invest in stocks, then prices should increase.
B. ?If investors demand lower returns to invest in stocks, then prices should fall.
C. ?If investors demand higher returns to invest in stocks, then prices should fall.
D. ?If investors expect their investments to generate lower future cash flows, then prices should increase.
E. ?If investors expect their investments to generate higher future cash flows, then prices should fall.
Answer: C
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A. Valuation or allocation. B. Completeness. C. Existence or occurrence. D. Rights and obligations.
Which of the following should be included in a blog to make it interesting and lively for readers?
A) Headlines B) Controversial topics C) Information of the business D) Product demonstrations E) Pinterest links
If the forward rate is an unbiased predictor of the expected spot rate, which of the following is NOT true?
A) The expected value of the future spot rate at time 2 equals the present forward rate for time 2 delivery, available now. B) The distribution of possible actual spot rates in the future is centered on the forward rate. C) The future spot rate will actually be equal to what the forward rate predicts. D) All of the above are true.
Aaron, a businessman, has a method of keeping track of accounts receivable by sorting them into groups of those that are 30, 60, 90, and over 90 days past due. Which of the following actions will the collection agency which buys the delinquent account from Aaron do?
A. Take mild actions and collect a token amount. B. Collect the entire amount owed and return it to Aaron. C. Sell it back to Aaron after collecting the entire amount owed. D. Collect the entire amount owed and keep all the money it obtains.