If the risk associated with a company goes up, you would expect the price of its stock to
A) rise.
B) fall.
C) be unaffected.
D) fall to zero.

Name: If the risk associated with a company goes up, you would expect the price of its stock to A) rise. B) fall. C) be unaffected. D) fall to zero.
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Question

Quizplus · Accepted Answer

When the risk associated with a company goes up, investors become more cautious and may sell their shares, causing the price of the stock to fall.

If the Risk Associated with a Company Goes Up, You