Uncertainty Always Causes

question 93

Multiple Choice

Uncertainty always causes:

• A) investment to increase.
• B) consumption to increase.
• C) government spending to increase.
• D) investment to decrease.

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Definitions:

Countercyclical Stock

A type of stock whose performance is inversely related to the overall economic cycle, often performing better during economic downturns.

Expected Return

It represents the weighted average of all possible returns from an investment, considering the probabilities of each outcome.

Beta

A measure of a stock's volatility in relation to the overall market; indicating the relative risk associated with investing in the stock.