题目问的什么意思

问题如下：

After integrating the ESG factors, the credit spread on BR Hotels’ bonds is most likely to:

选项：

A.

decrease.

B.

remain unchanged

C.

increase.

解释：

C is correct. BR Hotels faces significant corporate governance and social risk. Corporate governance risk is high due to a low number of independent board members (1 out of 15 members), lack of gender diversity (2 women out of 15 members), and low percentage of board members with hotel industry experience (20%). These factors are likely to increase investors’ perception of the corporation’s risk. The social risk for BR Hotels is also high. BR Hotels has a high labor turnover rate, pays most of its workforce at or near the minimum wage, and offers no health benefits. Legislation raising the minimum wage and the growing pressure on BR Hotels to offer benefits would increase operating costs. This could have a negative impact on future cash flows, which would be detrimental to the bond holders. The valuation of BR Hotels’ bonds could be adversely affected by the higher ESG risk. To account for the higher ESG risk, the credit spread on BR Hotels’ bonds is likely to increase.

A is incorrect since the credit spread on BR Hotels’ bonds is likely to increase and not decrease.

B is incorrect since the credit spread on BR Hotels’ bonds is likely to increase and not remain unchanged.