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If investors become increasingly worried about the economysay, as shown by declining stock priceswhat is the most likely impact on credit spreads? a. There will
If investors become increasingly worried about the economysay, as shown by declining stock priceswhat is the most likely impact on credit spreads?
a.
There will be no change to credit spreads. They are not affected by equity markets.
b.
Narrower spreads will occur. Investors will move out of equities in to debt securities.
c.
Narrower spreads will occur. Investors will buy more shares of stock at a lower price.
d.
Wider spreads will occur. Investors are concerned about weaker credit worthiness.
e.
None of the above
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