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QUESTION 2 10 points Save Answer Bob: Hey Alicel What are you up to? Alice: I'm just looking at used cars sold at auctions. I

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QUESTION 2 10 points Save Answer Bob: Hey Alicel What are you up to? Alice: I'm just looking at used cars sold at auctions. I buy one and sell after driving it a little bit. Bob: see Cars are at auctions are usually cheap. So, you might get a good deal. And, when you sell at a high price, potential buyers might think that it is of high quality signaled by the price, right? Alice Indeed. My only concern is that you might get a bad lemon cartoo. Which of the following finance principles are hidden in the discussion above? time value of money high risk - high expected retum il cash flows are the source of value w market prices reflect the information I and Il land Ill Hand IV Lil and TV LILII and IV

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