Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins? Why or why not?

Everything else held constant, would an increase in volatility of stock prices have any impact on the demand for rare coins? Why or why not?




Yes, it would cause the demand for rare coins to increase. The increased volatility of stock prices means that there is relatively more risk in owning stock than there was previously and so the demand for an alternative asset, rare coins, would increase.


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