Multiple Choice
Your dad said that he was curious to know why there is so much fluctuation in the value of common stocks.In 1997 the prospects for Sun Industries became more uncertain and investors began to view it as a more risky investment than they had previously.To compensate for this added risk,investors increased their required rate of return on Sun Industries stock,resulting in a decline in its market value.This explains the factor of
A) earnings growth and stock valuation.
B) interest rates and stock valuation.
C) risk and stock valuation.
D) supply and demand.
E) dividend strength and stock valuation.
Correct Answer:
Verified
Correct Answer:
Verified
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