If Investors Started to Prefer Investing in More Ethical Companies

question 97

Multiple Choice

If investors started to prefer investing in more ethical 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) Increase, and the rates of return would increase relative to other companies
• C) Increase, 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:

Widely Diffused

Refers to ideas, products, or practices that have spread broadly across different cultures or societies.

Armed Conflict

A contest or struggle between armed forces, typically involving violence and the use of weapons, aiming to achieve political or territorial objectives.

Politically Distinct Groups

Groups identified by their specific political beliefs, ideologies, or affiliations, distinguishing them from other political entities.

Territory

An area of land under the jurisdiction of a ruler or state; in animal behavior, a region defended by an animal or group of animals against others.