The Current Price of a Stock Increases When

question 44

Multiple Choice

The current price of a stock increases when:

• A)expected future dividends decrease.
• B)the expected future price of the stock decreases.
• C)interest rates decrease.
• D)the perceived riskiness of the stock increases.

---

Definitions:

Physical World

The material universe that includes all of the physical objects and forces that interact within it.

Proven

Demonstrated to be true or effective through empirical evidence or logical reasoning.

Scientific Paradigm

A framework containing all the commonly accepted views about a subject, a set of assumptions, concepts, values, and practices that constitutes a way of viewing reality for the community that shares them, especially in an academic discipline.

Accepted View

The commonly or widely held belief or opinion on a particular matter.