If all other factors are equal, which of the following would least likely explain the fall in price of a particular company's shares? The rise in ______.

A. real GDP growth
B. expected cash flows of the company
C. volatility in GDP growth

Correct Answer: B

Both the rise in real GDP growth and volatility in GDP growth will result in a rise in real risk-free rate and thus a fall in share price. The rise in expected cash flows, however, will cause the stock price to rise, not fall.