Which of the Following Scenarios Is Most Likely to Lead

Multiple Choice

Which of the following scenarios is most likely to lead to an increase in a firm's credit spreads?

A) The firm's assets increase in value and the volatility of its assets also increases.
B) The firm's assets increase in value and the volatility of its assets decreases.
C) The firm's assets decrease in value and the volatility of its assets increases.
D) The firm's assets decrease in value and the volatility of its assets decreases.