SIE Exam Question 377: Answer and Explanation

Question: 377

In the industry, the term 'Blue Chip' most often is associated with:

• A. stocks that outperform GDP
• B. stocks that outperform the CPI
• C. stocks that consistently produce income and modest growth over long periods of time
• D. All of the above

Correct Answer: C

Explanation:

C: When the term blue chip stocks is used, think of the long-establish most well-known companies that consistently perform well and have done so for a very long time. Most if not all of these are listed on the NYSE.