7
lesson pretestMultiple Choice

Pretest

Question 7 • Economics

What might convince an investor to buy stock or mutual funds?

Answer
A
belief that a company has just reached its peak popularity
B
news that a stock's price has recently increased significantly
C
belief that a small number of investors have bought the stock so far
D
news that a company is about to release a promising product

Explanation

News that a company is about to release a promising product may lead investors to expect higher future sales and profits, which can make its stock or a mutual fund holding that stock more appealing. The other choices focus on popularity or a recent price increase, which do not by themselves show that the investment’s future prospects are strong.

AI-written and checked against the verified answer.

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