Question: the correct answer is NOT E As the required rate of return on an asset decreases L. Asset prices increase because the cash flows increase

the correct answer is NOT E the correct answer is NOT E As the required rate of return

As the required rate of return on an asset decreases L. Asset prices increase because the cash flows increase II. Asset prices increase because the present value of cash flows increases III. Asset prices decrease because there is a negative relationship between prices and retums a. I only b. III only c. II only d. 1 and 11 e. II and

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