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Common stocks for which of the following industries are most likely to decline in value when interest rates rise?
A. stock brokers
B. automobile manufacturers
C. airlines
D. public utility companies
Answer: D
Explanation:
Explanation/Reference:
Explanation: public utility companies. Interest rates most affect the companies with the greatest amount of debt. Public utility companies are highly leveraged. Hence, they most likely incur the largest effect of rising interest rates.
NEW QUESTION: 2
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