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:

Set Point

A theory suggesting that the body regulates its weight and energy levels around a genetically predetermined baseline.

Strict Diet

A dietary regimen that precisely limits or restricts certain foods or nutrients, often for health or weight management.

Underlying Eating Disorder

A set of serious conditions characterized by abnormal eating habits that negatively affect a person's physical or mental health.

Set Points

refer to the theory suggesting that each person's body weight is regulated around a genetically determined range or point.