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As the required rate of return on an asset decreases A) asset prices increase because the cash flows increase B) asset prices increase because the

As the required rate of return on an asset decreases

A) asset prices increase because the cash flows increase

B) asset prices increase because the present value of cash flow increases

C) asset prices increase because there is a negative relationship between prices and returns

Which of the following are true?

1) A only

2) B only

3) C only

4) A and B

5) B and C

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