Elections can be emotional events. After all, they may put into power a person or party whose policies may be different from those to which we've become accustomed. Political decisions affect economic policy and economic outcomes which, in turn, impact financial markets. Thus, political uncertainty is often reflected in falling stock prices and depressed investment as firms adopt a more cautious approach until after the election. Explain a possible economic reason for this result. Does your explanation require that the firms' managers are risk averse?