Angela is considering buying stock in a popular computer software company whose price has dropped significantly in the last year. Why might this be a wise move for Angela to make?

A stock’s price being low may give Angela an opportunity to buy at a lower cost and potentially sell later if its price rises. This is the principle of buying low and selling high, so choice B is correct. The investment is not guaranteed by the government, and liking the company’s products does not guarantee that its stock price will recover.

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