Which of the Following Statements Regarding Defensive Stocks Is True

question 49

Multiple Choice

Which of the following statements regarding defensive stocks is true?

• A) They are often expected to have above-average future growth.
• B) They often have high P/E multiples.
• C) They are expected to be adversely affected by high interest rates.
• D) They often produce necessary items such as food and prescription drugs.

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Definitions:

Imaginary Creatures

Beings conceived in the mind that do not exist in the physical world, often found in mythology, folklore, or fantasy.

Inductive

Characteristic of disciplinary methods, such as reasoning, that try to teach an understanding of the principles behind parental demands.

Disciplinary Measures

Strategies or actions implemented to correct or manage behavior, often used in educational, organizational, or parental contexts to enforce rules and promote desired behaviors.

Reasoning

The cognitive process of seeking to make sense of something or derive logical conclusions from facts or premises.