Question

New information that might lead to a decrease in an asset's price might be ________. A. an expected increase in the future sales price B. a decrease in the required rate of return C. an expected decrease in the level of future dividends D. an expected increase in the dividend growth rate

Answer 1

Answer: an expected decrease in the level of future dividends

Explanation:

If a new information is released about an asset, that there would be a decrease in the future earnings to be gotten from that asset, the asset's value would automatically drop because investors would no longer be willing to purchase that asset at a high price.