The Clientele Effect Maintains That Many Investors Choose Stocks at Least

question 16

Multiple Choice

The clientele effect maintains that many investors choose stocks at least in part for dividend policy, so any change in payments is disruptive, because it represents:

• A)uncertainty in the treatment of capital gains.
• B)something new about which they are uncertain.
• C)risk, to which investors are generally averse.
• D)change away from something they like about the firm.

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Definitions:

Poisson Distribution

A probability distribution that measures the likelihood of a given number of events occurring in a fixed interval of time or space.

Post Office

A public department responsible for mail collection, delivery, and other postal services.

At Least 10

A term describing a scenario where the number in question is not less than 10, implying a minimum count or threshold.

Unsafe Levels

Concentrations or conditions of a substance or environmental factor that pose a risk to health, safety, or well-being.