In a One-Period Valuation Model,a Decrease in the Required Return

question 51

Multiple Choice

In a one-period valuation model,a decrease in the required return on investments in equity causes a(n) ________ in the ________ price of a stock.

• A)increase;current
• B)increase;expected sales
• C)decrease;current
• D)decrease;expected sales

---

Definitions:

Behaviorist Perspective

An approach in psychology focusing on observable behaviors and the ways in which learning occurs through interactions with the environment.

Hypotheses

Proposed explanations or predictions that can be tested through research and experimentation.

Theories

Systematically organized principles or explanations about phenomena or relationships in the universe.

Experiments

Scientific procedures undertaken to make a discovery, test a hypothesis, or demonstrate a known fact.