Which of the following statements is TRUE?
I. The riskiest stocks tend to move in sync with the economy.
II. A relatively safe stock is one that does not vary much with the state of the economy.
III. Health care stocks are some of the riskiest stocks.
A) III only
B) I and II only
C) II and III only
D) I only

Question

Quizplus · Accepted Answer

Statement I is true because stocks that are more sensitive to changes in the economy are typically riskier. Statement II is also true because stocks that are not sensitive to changes in the economy are considered safer. Statement III is false because health care stocks are generally considered less risky due to their defensive nature and consistent demand regardless of the state of the economy.

Which of the Following Statements Is TRUE