You read a story in the Financial Times reporting that mutual funds that invest primarily in equities are currently holding a high level of cash. Based on this, where do many analysts think stock prices are headed and why?

a. Stock prices are expected to increase as mutual fund managers use cash to buy stocks.

b. Stock prices are expected to decrease because mutual fund managers are holding cash instead of buying stocks.

c. Stock prices are expected to increase as mutual fund managers use cash to buy more bonds.

d. Stock prices are expected to decrease because mutual fund managers are holding cash instead of buying bonds.