SIE Exam Practice Question 1049

Question: 1049

Which of the following is correct regarding defensive stocks?

A. They are stocks that invest in the defense sector of the U.S. economy.

B. They are stocks that are unaffected by general fluctuations in the economy.

C. They are stocks that are tax efficient and therefore "defensive" for tax purposes.

D. They are stocks that are unaffected by changes in interest rates.