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Why Would Stock for a High-End Store with Expensive Clothingbe

Question 44

Multiple Choice

Why would stock for a high-end store with expensive clothingbe considered risky in a recession?


A) Consumers demand cheaper clothes in times of recession, and that company would be expected to make lower profits.(True
Answer ) Correct
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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