Question

Following the financial crisis in 2008 and the shutdowns this year due to the COVID-19 virus,...

Following the financial crisis in 2008 and the shutdowns this year due to the COVID-19 virus, risk premiums of securities such as stocks generally __________ because ____________.

Group of answer choices

a. Increased; the cash flows of firms were also increasing

b. Decreased; investors did not want in lose more money

c. decreased; the value of financial assets became riskier due to greater uncertainty about future cash flows

d. Increased; the value of financial assets became riskier due to greater uncertainty about future cash flows

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Answer #1

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