SIE Exam Practice Question 903

Question: 903

All but which of the following are correct regarding counter-cyclical stocks?

Correct Answer: C

Explanation:

Counter-cyclical stocks perform better during economic downturns because they are negatively correlated to the overall state of the economy. They outperform during the contraction phase of the business cycle. Examples of counter-cyclical stocks include debt collectors, discount retailers, and alcoholic beverage manufacturers.

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