1)Based on the Dividend Model, which of the following events would cause a stock's price to decrease?

Group of answer choices

a) investors feel the stock's risk has increased

B)investors feel the stock's risk has decreased

c)investors perceive future forecasted earnings to be more certain

d)investors expect earnings to grow at a faster rate in the future

2)Which of the following events would cause a company's cost of retained earnings to increase?

Group of answer choices

a)the company's stock price falls

b)the company's forecasted growth in profits and dividends is reduced

c)the company diversifies into a safer industry

d)the overall beta for a company falls