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

Homework Answers

Answer #1

Feedback is welcomed. Thumbs up will highly be appreciated.

Know the answer?
Your Answer:

Post as a guest

Your Name:

What's your source?

Earn Coins

Coins can be redeemed for fabulous gifts.

Not the answer you're looking for?
Ask your own homework help question
Similar Questions
Financial regulations are rules created and imposed by the government on financial institutions, such as banks....
Financial regulations are rules created and imposed by the government on financial institutions, such as banks. The objective of financial regulations is to prevent the abuse of financial services to customers, to protect the savings of the public, and to keep the financial economy stabilized (Rose, Hudgins 2008 p. 31). It is accurate to state that the impact of past financial crises has established and contributed to the amelioration of financial regulation over the decades. In 1929 when the Great...
2) A spike in “All Other Outlays” of the federal government in 2009 was due to:...
2) A spike in “All Other Outlays” of the federal government in 2009 was due to: a) an increase in the financial aid given to Greece earlier that year. b) an increase in the expenditures on Social Security and Medicare. c) the fiscal stimulus package passed earlier that year. d) a sudden increase in military expenditure as a result of the war in Iraq. e) an increase in the national debt earlier that year. 3) In 2016, welfare spending accounted...
.1. Which of the following is not a correct statement about accounting? a. Generally accepted accounting...
.1. Which of the following is not a correct statement about accounting? a. Generally accepted accounting principles (GAAP) is a set of accounting standards used in the preparation of financial statements. b. Financial Accounting Standards Board (FASB) is a private organization delegated by the Federal Reserve with the responsibility to establish the GAAP. c. Management accountants work with a business or nonprofit organizations, preparing reports and analyzing financial info. d. Public accountants provide a variety of accounting services for clients...
Months into the COVID-19 pandemic, which continues to affect a growing number of countries and people,...
Months into the COVID-19 pandemic, which continues to affect a growing number of countries and people, 1 the responses to our newest McKinsey Global Survey on economic sentiment confirm the extent of the damage so far. 2 Respondents are much likelier now than in March (52 percent, up from 10 percent) to say their countries’ economies have declined substantially in recent months, and more than twice as likely to report substantially worse conditions in the global economy. Across geographies, vast...
The heydays of fiscal policy was 1960s. Since then it lost credibility due to concern of...
The heydays of fiscal policy was 1960s. Since then it lost credibility due to concern of persistently large budget deficits and uncertainty over political system whether it can make tax and spending decisions in a timely way to achieve desirable stabilization outcomes. Monetary policy henceforth was the dominant policymaking tool. During the late 1970s, an overly loose monetary policy was commonly thought to have contributed to the burst of double-digit inflation in 1979 and 1980. Tight monetary policy engineered by...
QUESTION 6 Which of the following is true about acquisitions? the value of the target company...
QUESTION 6 Which of the following is true about acquisitions? the value of the target company always goes up the value of the acquiring company always goes up the value of the acquiring company always goes down none of the above 5 points    QUESTION 7 Financial ratios can be used to compare company's performance with the rest of the industry deterime the value of the company's assets only to determine the company stock value make projections for the future...
QUESTION 1 The most common type of business organisation is a. non-for-profit organisation b. partnership c....
QUESTION 1 The most common type of business organisation is a. non-for-profit organisation b. partnership c. company/corporation d. sole proprietorship 1 points    QUESTION 2 A business financial statement is meant to convey information about the business to _________________ users in order to help them make decisions about the business. a. internal and external b. internal only c. external only d. none of the above 1 points    QUESTION 3 Which of the following is an advantage of being a...
1. Among the following statements, only 3 are correct with respect to corporate valuations. Identify which...
1. Among the following statements, only 3 are correct with respect to corporate valuations. Identify which ones. a)      There are several potential values for a single company b)      Valuation combines business and financial analysis, as well as the use of valuation methodologies c)      The value of a company with stable earnings does not change over time d)      Valuation is only based on future earnings projections, one does not take into account current or historical performance at all 2. Which of...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows...
Multiple Choice 11. Prepayment risk is: A. the risk you will not receive the cash flows on a mortgage-backed security B. the risk that you will receive the cash flows sooner than expected and be forced to invest at a lower rate. C. the risk that you will receive the cash flows later than expected and not be able to invest at current, higher rates. 12. Based on the video Inside the Meltdown, it appeared that the main reason Lehman...
If you are not familiar with Accounting and Taxation, please do not take this question. Ch4...
If you are not familiar with Accounting and Taxation, please do not take this question. Ch4 Q2 A variety of investments is available in the marketplace. What types of investors (clienteles) are most appropriate for (a) municipal bonds (b) hi growth, low dividend stocks (c) lower growth, high dividend stocks? Chapter Summary Different economic activities are taxed differently, even if undertaken in the same organizational form. The unequal taxation of returns affects the demand for investment and thereby affects the...