Reasons behind the drop in bank profitability in the late 2000s include increase in competitive pressures on asset pricing. Hence, option B is correct.
The Asset Pricing Program looks into the factors that influence the prices and returns of financial and tangible assets such stocks, bonds, cash, and real estate. It also looks into the behavior of the individuals and organizations that invest in these assets.
Asset prices are also of fundamental significance for the macroeconomy since they provide crucial information for important economic decisions impacting actual investments and consumption.
Thus, option B is correct.
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