The Clientele Effect Maintains That Many Investors Choose Stocks at Least

Multiple Choice

The clientele effect maintains that many investors choose stocks at least in part for dividend policy, so any change in payments is disruptive, because it represents:

A) uncertainty in the treatment of capital gains.
B) something new about which they are uncertain.
C) risk, to which investors are generally averse.
D) change away from something they like about the firm.