what is the right answer for each:

XYZ corp runs a large plant in Nebraska and just finished a risk assessment. The company just announced that in any given year, there is a 2% chance the plant has an accidental breakdown that lasts for 2weeks. This probability of 2% is an upward revision of the prior assessment of a 1% chance). How will the announcement affect ABC's stock price?

it will increase

it will decrease

it will not affect it

Same corp runs a large plant in Nebraska and just finished a risk assessment. The company just announced that in any given year, there is a 2% chance the plant has an accidental breakdown that lasts for 2weeks. This probability of 2% is an upward revision of the prior assessment of a 1% chance). How will announcement affect ABC'scost of capital? (assume the CAPM is how investors set the cost of capital).

Group of answer choices

it will decrease

it will increase

it will not affect it