A ________ stock will likely suffer the least amount of depreciation in a major recession.

Question

Quizplus · Accepted Answer

Defensive stocks are typically companies that produce goods or services that people continue to purchase, even during a recession. These stocks are often found in industries such as healthcare, utilities, and consumer staples. As a result, they tend to be more resistant to market downturns and suffer less depreciation than cyclical or growth stocks. Blue chip stocks are large, well-established companies with a long track record of stability and consistent growth, but they may still suffer significant depreciation in a major recession. Therefore, option D, defensive stocks, are the best choice for the least amount of depreciation in a major recession.

A ________ Stock Will Likely Suffer the Least Amount of Depreciation