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:

Geographical Structures

Organizational structures that are arranged based on geographical regions or territories.

Market Area

A geographical region or demographic group in which a company's products or services are marketed and sold.

Central Point of Accountability

The specific position or individual within an organization assigned the responsibility for overseeing the successful achievement of certain objectives or tasks.

Functional Structure

An organizational design where the company is divided into departments based on specialized functions, such as marketing, finance, or operations.