Question: Based on the dividend-discount model, what do you think would happen to stock prices if there were a decrease in the perceived riskiness of domestic
Based on the dividend-discount model, what do you think would happen to stock prices if there were a decrease in the perceived riskiness of domestic real estate purchases?
If investors perceive domestic real estate purchases are less risky, then the relative riskiness of stocks will(Click to select)
rise
fall
.Stocks would become relatively(Click to select)
more
less
attractive, requiring a(Click to select)
smaller
larger
risk premium than before. From the dividend-discount model, we can see that a(Click to select)
rise
fall
in the risk premium would lead to a(Click to select)
fall
rise
in stock prices.
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