Which of the Following Is a Characteristic of Cyclical Stock

question 28

Multiple Choice

Which of the following is a characteristic of cyclical stock?

• A) Their value is tied with the overall state of economy.
• B) They are low-priced, speculative and risky securities.
• C) They have stable earnings and no extensive liabilities
• D) None of the above

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Definitions:

Stock Variable

A quantity measured at one specific point in time, representing a snapshot of a quantity.

Unemployment Rate

The percentage of the labor force that is jobless and actively looking for employment.

Federal Government

The central government of a federation, which encompasses the overall governing bodies of a country, including legislative, executive, and judicial branches.

Consumer Income

The total amount of income earned by consumers, including wages, salaries, benefits, and investment income.