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:

Drawee

The party in a financial transaction who is directed to pay a certain sum of money in a draft or check, typically a bank.

Forged Indorsement

A fraudulent signature, often on the back of a negotiable instrument like a check, intended to transfer its ownership.

Conversion

An unauthorized act that deprives an owner of their property without their approval, often involving theft or misuse of the property.

Required Indorsements

Signatures or stamps mandatory on certain documents to validate them or to transfer rights represented by such documents.