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?

• A)Defensive stock
• B)Cyclical stock
• C)Small cap stock
• D)Blue chip stock
• E)Growth stock

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Definitions:

Internal Benchmarking

The process of comparing practices, processes, or performance metrics within an organization to identify best practices and improve efficiency, quality, or performance.

Best Practices

Things people and organizations do that lead to superior performance.

Best Practices

A set of guidelines, ethics, or ideas that represent the most efficient or prudent course of action in a given business situation.

Superior Performance

Achieving results that surpass expected standards or benchmarks, often leading to competitive advantage.