A change in perceived risk of a stock changes
A)the expected dividend growth rate.
B)the expected sales price.
C)the required rate of return.
D)the current dividend.

Question

Quizplus · Accepted Answer

The perceived risk of a stock is directly related to the required rate of return, as investors demand higher returns to compensate for higher perceived risk. Therefore, a change in perceived risk will result in a change in the required rate of return. The expected dividend growth rate, current dividend, and expected sales price may be influenced by various factors such as industry trends, company performance, and market conditions, but these factors are not directly related to perceived risk.

A Change in Perceived Risk of a Stock Changes