Which of the following is the characteristic of a cyclic stock?

Question

Quizplus · Accepted Answer

Cyclical stocks are highly affected by the overall state of the national economy and tend to perform well in times of economic growth but poorly in times of recession. They are typically tied to industries that are sensitive to economic changes such as consumer discretionary, industrials, and materials. Thus, option A is the right characteristic of a cyclic stock. Option B describes penny stocks, C describes defensive stocks, and D describes high-risk growth stocks.

Which of the Following Is the Characteristic of a Cyclic