If Investors Showed Less of a Preference for Investing in War-Related

question 56

Multiple Choice

If investors showed less of a preference for investing in war-related companies, then it would be expected that the stock prices for those companies would

• A) increase, and the rates of return would decrease relative to other companies.
• B) decrease, and the rates of return would increase relative to other companies.
• C) decrease, but the rates of return would stay the same relative to other companies.
• D) decrease, and the rates of return would decrease relative to other companies.

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Definitions:

Sample Mean

The average value of a sample set of data, used as an estimate of the population mean.

Population Distribution

The spread of people across locations, often analyzed for understanding demographics or economic conditions.

Skewed

describes a distribution that is not symmetrical, with a longer tail on one side of the peak than the other.

Normal Distribution

A probability distribution that is symmetrical around the mean, showing that data near the mean are more frequent in occurrence than data far from the mean.