Brian is considering investing in a fast food franchise which is forecast to earn Net Cash Flows of $50,000 per annum for the foreseeable future. The price to invest is $1 million. However, the Australian economy is weakening and in recession, which sharply increases the risk of the franchise. Which of the following conclusions reflects an appropriate adjustment to the risk-return relationship? Select all correct answers only.

Select one or more:

a.

Leave the price at $1 million, to have a 5% return

b.

Decrease the price to $900,000, to increase the return to 5.6%

c.

Increase the price to $1.2 million, to decrease the return to 5%

d.

Increase the price to $1.1 million, to increase the return to 5.5%