Question: All else equal, a reduction in expected future interest rates should lead to - an upturn in the stock market, as estimate of future cash
All else equal, a reduction in expected future interest rates should lead to
- an upturn in the stock market, as estimate of future cash flows are revised upward
- an upturn in the stock market, as future cash flows are discounted at lower rates
- a downturn in the stock market, as estimates of future cash flows are revised downward
- a downturn in the stock market, as future cash flows are discounted at higher rates a downturn in the stock market, as future cash flows are discounted at a lower rates
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