You own shares in a start-up internet company.If large swings in the stock market increase financial investors' concerns about market risk,then the price of your shares will ________,holding all other factors constant.

Question

Quizplus · Accepted Answer

Large swings in the stock market increase financial investors' concerns about market risk and make them more risk-averse. As a result, investors are likely to sell off risky assets, such as shares in a start-up internet company, causing the price of the shares to decrease.

You Own Shares in a Start-Up Internet Company