If enough investors decide to purchase stocks, they are likely to drive up stock prices, thereby causing _____________ and ___________.

1) expected returns to fall; risk premiums to fall

2) expected returns to rise; risk premiums to fall

3) expected returns to rise; risk premiums to rise

4) expected returns to fall; risk premiums to rise

Answer rating: 100% (QA)

The detailed answer for the above question is provided below The correct answer is 1 expected return... View the full answer