Why Would Stock for a High-End Store with Expensive Clothing

question 162

Multiple Choice

Why would stock for a high-end store with expensive clothing be considered risky in a recession?

• A) Consumers demand cheaper clothes in times of recession, and that company would be expected to make lower profits.
• B) Consumers do not buy stock when recessions occur.
• C) High-end clothing store stocks have low covariance with the market.
• D) Stocks from such companies depend heavily on oil prices.

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Definitions:

Multiple Intelligences

The idea that people have many different types of intelligence that are independent of one another.

Linguistic Intelligence

One of the multiple intelligences proposed by Howard Gardner, involving sensitivity to spoken and written language and the ability to learn languages.

Mathematical/Logical Intelligence

Refers to one of Howard Gardner's multiple intelligences, characterized by the ability to analyze problems logically, carry out mathematical operations, and investigate issues scientifically.

Emotional Intelligence

The ability to understand, use, and manage one's own emotions in positive ways to relieve stress, communicate effectively, empathize with others, and overcome challenges.