When the overall market is up by 10%, an investor with a portfolio of defensive stocks will probably have:

Question

Quizplus · Accepted Answer

Defensive stocks are stocks of companies that provide essential goods and services, such as healthcare, utilities, and consumer staples. These stocks are known for being more resistant to economic downturns and market volatility, but they also typically have lower growth potential.

When the overall market is up, defensive stocks may not perform as well as more aggressive stocks that are experiencing high growth. However, they are still likely to see positive returns, just at a lower rate than the overall market. Therefore, it is likely that an investor with a portfolio of defensive stocks will have positive portfolio returns less than 10% in this scenario.

When the Overall Market Is Up by 10%, an Investor