Question

You own shares in a well-managed and diversified company. If a bustling economy increases investors' concerns about market risk, then the price of your shares will ________, holding other factors constant.

A. not change
B. decrease
C. increase
D. either increase or decrease

Answer 1

C. Increase

Step-by-step explanation:

A bustling economy will make individuals want to take advantage of the opportunity. It’s however normal for prices of a good or service to increase when there is a huge demand for it.

In this case there was a boom in the economy which means the price of the shares he owns in the company will increase.