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On Sept. 26, 2019, WSJ published an article titled U.S. Stocks Drop on Political Uncertainty. Focusing on the discount rate effect, why do you think
On Sept. 26, 2019, WSJ published an article titled "U.S. Stocks Drop on Political Uncertainty". Focusing on the discount rate effect, why do you think stock prices tend to decline after an increase in political uncertainty? Group of answer choices Because higher political uncertainty increases firm's dr due to a decline in projected cash flows, thereby decreasing prices Because higher political uncertainty increases firm's dr due to a decline in the demand for goods and services, thereby decreasing prices Because higher political uncertainty increases firm's dr due to an increase in interest rates, thereby decreasing prices Because higher political uncertainty increases firm's dr due to an increase in systematic risk, thereby decreasing prices Because higher political uncertainty increases firm's dr due to a decline in the number of participants trading stocks, thereby decreasing prices
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