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.

Question

Quizplus · Accepted Answer

During a recession, consumers prioritize their spending and tend to opt for cheaper clothing options, which can lower the profits of high-end clothing stores. Therefore, investing in such stock can be considered risky during a recession.

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