Defensive stocks:
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A. B. C. D.A
Defensive stocks are stocks of companies that are less likely to be affected by changes in the economic cycle. These stocks tend to perform well during economic downturns or recessions when other stocks may decline in value.
Option A, "Are relatively independent from the business cycle," is a correct answer. Defensive stocks are considered defensive because they are less sensitive to changes in the business cycle. For example, companies that produce consumer staples, such as food, beverages, and household products, are less likely to be affected by economic downturns because people still need to buy these products regardless of the state of the economy.
Option B, "Are blue chip stocks," is incorrect. Blue chip stocks are stocks of large, well-established companies with a track record of stable earnings, and they are not necessarily defensive stocks. While some blue chip stocks may be considered defensive, others may be more sensitive to changes in the economic cycle.
Option C, "Are growth stocks," is incorrect. Growth stocks are stocks of companies with high potential for future growth, and they are typically more volatile than defensive stocks. While some defensive stocks may also be growth stocks, not all growth stocks are defensive.
Option D, "None of these," is incorrect. As explained above, option A is a correct answer.
In summary, defensive stocks are stocks of companies that are less likely to be affected by changes in the economic cycle. These stocks tend to perform well during economic downturns or recessions when other stocks may decline in value. Option A, "Are relatively independent from the business cycle," is the correct answer.