Question 1
All of the following are determining factors in the price of a share of stock
except
◦ expected dividends.
◦ the interest rate.
◦ the number of years the firm has existed.
◦ risk associated with the company.
Question 2
If the risk associated with a company goes down, you would expect the price of its stock to
◦ rise.
◦ fall.
◦ be unaffected.
◦ fall to zero.