Bob is a pessimist and he expects the required rate of return to increase across the board on all equity securities. From this we can infer that Bob expects:

A) Dividend-paying stocks to maintain a constant price while non-dividend paying stocks decrease in value.

B) A decrease in all stock values.

C) An increase in all stock values.

D) All stock values to remain constant.

E) Dividend-paying stocks to increase in price while non-dividend paying stocks remain constant in value.