Decrease across the board on all equity securities

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Bob is an optomist and he expects the required rate of return to decrease across the board on all equity securities (stocks), ceteris paribus. From this we can infer that Bob expects:

A decrease in all stock values.

Dividend-paying stocks to maintain a constant price while non-dividend paying stocks decrease in value.

Dividend-paying stocks to increase in price while non-dividend paying stocks remain constant in value.

An increase in all stock values.

All stock values to remain constant.

Reference no: EM131510771

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