Joe and Mary view themselves as shrewd investors. Over the years they have accumulated the following diverse list of securities designed to help pay for Matthew's college education:

• 100 shares of Alpha Corp. common stock, traded in the over-the-counter market; current market price is about $30 per share, the same as a year ago; current annual divided is $1.00 per share and is expected to grow at a rate of about 5% per year for the next several years.
• Three tax-exempt municipal bonds issued by the government of the city where the Donaldson's live; each bond has a $1,000 face amount, is selling for about $980 currently, the same price as a year ago, has a 6% annual coupon rate, and is scheduled to mature 4 years from now.
• Five recently acquired zero-coupon bonds issued by Beta Corp. several years ago and scheduled to mature in 5 years at a face value of $1,000 each; current market price of each bond is $920.
• 100 shares of Delta Corp. common stock that is listed on an organized securities exchange; historically, this stock has exhibited a beta of about 1.3; the stock currently is selling for about $7.00 per share and pays no dividend

Question:

What should happen to the intrinsic value of the Alpha Corp. common stock if Joe and Mary now decide that the stock is much riskier than they have previously been thinking?

a. The intrinsic value of the stock should rise because its increased riskiness will cause speculators to bid up its market price

b. The intrinsic value of the stock should fall because many investors will begin selling the stock, thus lowering its market price

c. The intrinsic value of the stock should fall because Joe and Mary should adopt a higher required rate of return on the stock

d. The intrinsic value of the stock should not change because a stock's intrinsic value is not affected by its riskiness