Which One of the Following Statements Does NOT Explain Why

question 10

Multiple Choice

Which one of the following statements does NOT explain why some stocks of some companies are better hedges against inflation than others?

• A) Their earnings are less-inflation sensitive.
• B) Defense contractors are well-equipped to pass along price changes.
• C) Electric utilities are very free to pass along cost increases despite the regulatory aspects of the business.
• D) Electric utilities are constrained in their ability to pass along price changes due to the regulatory nature of the business..

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