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Suppose several major banks in the U.S. and European Union suddenly collapsed causing financial panic worldwide. All else equal, this event would likely the market

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Suppose several major banks in the U.S. and European Union suddenly collapsed causing financial panic worldwide. All else equal, this event would likely the market risk premium and the prices of most common stocks? Select one: a. increase, increase b. decrease; decrease c. increase; decrease d. decrease; increase Lemon Corp.just announced a 12.5% decline in its quarterly earnings. The price of Lemon common stock actually increased nearly 10% within a few minutes of the announcement. Which of the following statements is most likely correct? Select one: a. Analysts expected an even larger decline in quarterly earnings; therefore it was treated as "good news" by analysts and investors b. The Securities and Exchange Commission (SEC) must have announced that it considers the firm's common stock to be undervalued c. The firm must have announced that it has lowered its prices on all of its products d. The company must have cooked its books and investors recognized the value in doing so

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