Anthony Edwards wants to diversify his portfolio by adding a stock that maintains a stable value when the economy declines. What type of stock does Anthony want to add to his portfolio?
A) Defensive stock
B) Cyclical stock
C) Small-cap stock
D) Blue-chip stock
E) Growth stock

Question

Quizplus · Accepted Answer

Anthony is looking for a defensive stock, which is a type of stock that tends to perform well during economic downturns or recessions. These stocks are typically from industries that provide essential goods or services that people continue to use even during tough economic times, such as healthcare, utilities, and consumer staples. Defensive stocks are considered safer investments because they are less affected by economic cycles and provide stability to a portfolio.

Anthony Edwards Wants to Diversify His Portfolio by Adding a Stock