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:

Physiologic Changes

Alterations in the normal functions of the body, which may occur due to development, aging, or pathology.

Weight Change

An alteration in a person's body weight, which can be a loss or gain, resulting from various factors like diet, exercise, health conditions, or stress.

Tiredness

A feeling of a lack of energy or exhaustion that can result from physical exertion, lack of sleep, stress, or underlying health conditions.

Hair Loss

The thinning or loss of hair on the scalp or body, which can be due to various factors including genetics, stress, disease, or medication side effect.