100 shares of Alpha Corp. common stock, traded in the over-the-counter market; current market price is about $30 per share, the same as a year ago; current annual divided is $1.00 per share and is expected to grow at a rate of about 5% per year for the next several years.

What should happen to the intrinsic value of the Alpha Corp. common stock if Joe and Mary now decide that the stock is much riskier than they have previously been thinking?

a) The intrinsic value of the stock should not change because a stock's intrinsic value is not affected by its riskiness

b) The intrinsic value of the stock should fall because Joe and Mary should adopt a higher required rate of return on the stock

c) The intrinsic value of the stock should fall because many investors will begin selling the stock, thus lowering its market price

d) The intrinsic value of the stock should rise because its increased riskiness will cause speculators to bid up its market price