Anthony Edwards wants to diversify his portfolio by adding a stock that maintains a stable value when the economy declines.What type of stock does Anthony want to add to his portfolio?

Question

Quizplus · Accepted Answer

Defensive stocks are stocks of companies that are known for providing essential goods or services that people consume regardless of the economic conditions. These companies tend to perform well in a downturn and are considered to be more stable than cyclical or growth stocks. Thus, adding defensive stocks to a portfolio can provide stability during periods of economic decline.

Anthony Edwards Wants to Diversify His Portfolio by Adding a Stock