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Anthony Edwards Wants to Diversify His Portfolio by Adding a Stock

question 6

Multiple Choice

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


Definitions:

Hybrid Plans

Hybrid plans combine features of traditional defined benefit pension plans with those of defined contribution plans, offering benefits of both systems.

Old Age Security

A government-funded pension program in certain countries designed to provide a basic level of income to seniors.

Defined Pension Plans

A retirement plan where an employer promises a specified pension payment upon retirement, based on the employee's earnings history, tenure of service, and age.

Deferred Profit-sharing Plans

Retirement plans where a portion of the company's profits is contributed to the employees' retirement savings accounts, typically vested over time.

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