George Clancy wants to diversify his portfolio by adding a stock that has a value which moves in direct relation to the business cycle.What type of stock is George thinking about adding to his portfolio?
A)Defensive stock
B)Cyclical stock
C)Small cap stock
D)Blue chip stock
E)Growth stock

Question

Quizplus · Accepted Answer

Cyclical stocks are those that tend to move in direct relation to the business cycle, performing well when the economy is booming and underperforming during recessions or economic downturns.

George Clancy Wants to Diversify His Portfolio by Adding a Stock