Industries that generally perform well when other industries are performing well are referred to as:
A)Diversified industries
B)Cyclical industries
C)risk-free industries
D)Systematic risk industries

Question

Quizplus · Accepted Answer

Cyclical industries tend to perform well when the overall economy is performing well. As the name suggests, they go through cycles of expansion and contraction, and their performance is closely tied to the overall health of the economy. In contrast, diversified industries are not dependent on the overall economy and can perform well even in a downturn. Risk-free industries do not exist, as all industries carry some level of risk. Systematic risk refers to the risk that affects an entire market or economy, rather than specific to an industry.

Industries That Generally Perform Well When Other Industries Are Performing