- CFA Exams
- CFA Level I Exam
- Study Session 17. Portfolio Management (2)
- Reading 46. Economics and Investment Markets
- Subject 1. Framework for the Economic Analysis of Financial Markets
CFA Practice Question
If all other factors are equal, which of the following would most likely explain the rise in price of a particular company's shares?
A. The expected inflation rate has risen.
B. The company's future cash flows are expected to drop.
C. The risk-free interest rate has fallen.
Explanation: This is based on the present value model.
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