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:

Appraisers

Professionals who assess the value of properties, goods, or financial instruments, often for the purpose of taxation, sales, or financing.

Dumping

The practice of selling a product in a foreign market at a price that is lower than the domestic market or below the cost of production.

Price Discrimination

The strategy of selling the same product or service at different prices to different groups of customers, often based on willingness to pay, market demand, or other factors.

Exporting

The process of selling and shipping goods or services from one country to another.