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

question 44

Multiple Choice

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

• A)Consumers demand cheaper clothes in times of recession, and that company would be expected to make lower profits.(True
• Answer )Correct
• 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:

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The branch of biology that deals with the study of genes, genetic variation, and the hereditary traits in living organisms.